what you need to know
- Netflix’s efforts to crack down on password sharing are considered a success, and it seems only a matter of time before other services follow suit.
- Now, Disney CEO Bob Iger confirmed in a recent interview with CNBC that the password sharing policy will go into effect starting in June.
- The plan will start in “a handful of countries in a handful of markets,” but will affect all Disney+ subscribers by September 2024.
After building a user base and looking to make money, streaming services turned to cracking down on password sharing to achieve their goals. By letting password sharers pay for subscriptions individually, streaming services can effortlessly grow subscriber numbers and revenue. Netflix has proven with its crackdown that this approach can be successful, and it seems only a matter of time before other companies follow suit. Now, Disney CEO Bob Iger has confirmed that Disney+ will begin taking steps to prevent password sharing in just a few months.
In an interview with CNBC, Iger said the platform will “launch [its] Starting in June 2024, there will be “the first real foray into password sharing.” Prior to this, Disney released an updated subscriber agreement in January 2024 that explicitly prohibited password sharing.
“Unless your service level permits otherwise, you may not share your subscription with persons outside your household,” the new agreement explains. It also defines household as “associated with your primary personal residence and occupied by the individuals who reside therein.” A collection of equipment used”.
Presumably, Disney+ will require users to choose a primary residence, which will become their home. Similar to Netflix’s method of password sharing, Disney Plus may require users to log into their home Wi-Fi network once a month to confirm where they live. Depending on the wording of the subscriber agreement, the company may also offer password sharing as a benefit with certain subscription plans. But for now, this is all just speculation.
What we do know is that the Disney Plus password sharing crackdown will begin in June. It will be limited to a few countries and markets at first, similar to Netflix’s strategy. Iger explained that by September 2024, all Disney Plus users will be subject to the platform’s password sharing requirements.
While some have speculated that Netflix’s password-sharing crackdown would disenfranchise subscribers, that’s not the case so far. After Netflix introduced its password-sharing policy, the company reported an increase in subscribers in a shareholder report. Iger said in an interview with CNBC that he wants Disney Plus to become a growth business for Disney, and that effort appears to start with a new password-sharing program.