After Netflix, Now Disney Plus To Begin Crackdown On Password Sharing, Here’s When It Could Happen

Disney+'s decision to crack down on password sharing is not surprising. The company has been losing subscribers for the past two quarters

New Delhi: In a move that is likely to be welcomed by content creators and studios, Disney+ has announced that it will be following Netflix in cracking down on password sharing. The company says that it will begin testing new measures to limit the number of devices that can stream Disney+ on a single account, and that it may also start charging extra for password sharing in the future.

Disney+’s decision to crack down on password sharing is not surprising. The company has been losing subscribers for the past two quarters, and it is looking for ways to increase revenue. Password sharing is estimated to cost the streaming industry billions of dollars each year, and it is a major source of revenue leakage for Disney+, as per AV Club.

CEO Bob Iger Warns Of Serious Consequences

Disney’s recent decision to crack down on password sharing comes amid the backdrop of an earnings call by CEO Bob Iger who called for a more aggressive approach to deal with the issue of password sharing by users. This move is similar to the steps Netflix has taken in recent years, and likely to have a significant impact on the streaming industry.

Iger said that Disney+ is “true to the playbook” in taking this approach and noted that password sharing is a major source of revenue leakage for the company. He also said that Disney+ is looking for ways to increase revenue, and that cracking down on password sharing is one way to do that.

When It Could Happen

Iger predicted that the password enforcement would start sometime in 2024 and that it would likely include alternatives for users to pay to share accounts, similar to Netflix.

“We know what you’ve all been up to” language that’s always so ominous from the streamers, stating that, “We already have the technical capability to monitor much of this,”—referring to account sharing. And, the CEO assured investors, “I’m not going to give a specific number, except to say that it is significant.” Iger was quoted saying by the site.

Disney has announced that it will be hiking up the prices of its streaming services, Disney+ and Hulu. However, there is a catch: those who choose to bundle the two services will be able to pay just $19.99/month for their ad-free versions. This is a significant discount, and it is likely to be attractive to many consumers.

Disney+ On A Subscriber Losing Streak

Disney’s streaming service has lost subscribers for the third consecutive quarter. The biggest reason for this decline is the loss of 12.5 million paid subscribers from Disney+ Hotstar in the third quarter ending July 1, 2023. This is the largest drop in subscribers since the company began disclosing its paid member count in April 2020.

The loss of subscribers from Disney+ Hotstar is likely due to a number of factors, including the loss of the Indian Premier League (IPL) streaming rights to rival JioCinema. The IPL is a hugely popular cricket tournament in India, and it is estimated to have accounted for a significant portion of Disney+ Hotstar’s subscribers, as per the Economic Times.