Disney CEO Bob Iger has announced that the company will start implementing stricter measures to deter password sharing globally starting this summer, a disclosure he made in an interview with CNBC
Similar restrictions were previously introduced for Canadian subscribers last autumn.
The decision comes as no surprise, as Disney’s CFO Hugh Johnston had outlined the plan during an earnings call in February, stating, “Paid sharing is an opportunity for us. It’s one that our competitor is obviously taking advantage of, and one that sits in front of us. We’ve got some very specific actions that we’re taking in the next couple of months.” Disney-owned Hulu initiated its own crackdown on password sharing on March 14, and the terms of service for both platforms explicitly prohibit the use of other customers’ login credentials (with Disney now indicating its readiness to enforce this policy).
Various streaming services are tightening restrictions on password sharing, a move that appears to be yielding positive results for them. According to analytics firm Antenna, Netflix experienced a 102 percent increase in new signups in the United States during the first four days after implementing the rule, compared to the preceding 60 days.
The average daily new signups reached 73,000, surpassing cancellations. HBO Max is also set to enforce sharing restrictions starting this year, with full implementation expected by 2025.
Disney+ will initiate its crackdown in select countries in June, with plans to expand to additional countries in September. The specific inclusion of the United States in either group has not been clarified yet, but Disney is expected to provide further details closer to the implementation dates.
Currently, Disney+ subscription costs $8 monthly for advertisements and $14 monthly for ad-free viewing.
