What you need to know
- Netflix's effort to crack down on password sharing was seen as successful, and it seemed like it was only a matter of time before other services followed suit.
- Now, in a recent interview with CNBC, Disney's CEO Bob Iger confirmed that a password sharing policy would take effect starting in June.
- The rollout will start with "just a few countries in a few markets," but will affect all Disney Plus subscribers by September 2024.
After building out their subscriber bases and seeking profitability, streaming services are turning to password-sharing crackdowns to hit their goals. By getting password sharers to pay individually for subscriptions, streaming services increase subscriber count and revenue without much effort. Netflix proved that this method could be successful with its crackdown, and it seemed like only a matter of time before other companies followed suit. Now, Disney CEO Bob Iger has confirmed that Disney Plus will start taking steps to prevent password sharing in just a few months.
In an interview with CNBC, Iger said that the platform would be "launching [its] first real foray into password sharing" beginning in June 2024. This follows Disney releasing an updated subscriber agreement in January 2024 that explicitly bars password sharing.
"Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household," the new agreement explains. It also defines a household as "the collection of devices associated with your primary personal residence that are used by the individuals who reside therein."
Presumably, Disney Plus will ask users to pick a primary residence, and this will become their household. Similar to Netflix's approach to password sharing, Disney Plus could require users to log into their home Wi-Fi network once a month to confirm their residency. Based on the wording of the subscriber agreement, the company could also make password sharing a benefit of certain subscription plans. For now, though, this is all speculation.
What we do know is that the Disney Plus password-sharing crackdown will start in June. It'll be limited to a few countries and markets at the start, which is similar to Netflix's strategy. Iger explained that all Disney Plus users will be bound to the platform's password-sharing requirements by September 2024.
Though some speculated that Netflix's password-sharing crackdown would disenfranchise subscribers, that hasn't been the case so far. Following the rollout of Netflix's password-sharing policies, the company reported an increase in subscribers in its shareholder reports. Iger said in the CNBC interview that he wants Disney Plus to become a growth business for Disney, and that effort appears to be starting with new password-sharing initiatives.
