Disney made it clear this week that it is getting serious about cracking down on password sharing on its popular Disney+ streaming platform.
During an earnings call on Wednesday, Disney’s Chief Financial Officer Hugh Johnston stated that accounts “suspected of improper sharing” will soon see prompts giving them the option to sign up for their own separate subscription. Additionally, current subscribers will have the ability to pay an unspecified “additional fee” to add users outside of their household to their account.
“We want to reach as large an audience as possible with our outstanding content,” Johnston explained. “We’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base.”
This crackdown should not come as a surprise. Over the past year, Disney has updated its terms of service to explicitly ban password sharing beyond a household. And competitor Netflix has already implemented a paid sharing feature charging extra per month to add members outside a home.
“Paid sharing is an opportunity for us,” Johnston noted, indicating Disney sees a chance to benefit financially from this shift.
The move comes as Disney Plus plans other major changes like integrating its platform into a single app with Hulu starting in March. And while Disney Plus saw some subscriber losses in the US and Canada after recent price hikes, Hulu membership grew.
With the password crackdown slated to roll out this summer, Disney is showing it is finished turning a blind eye to those accessing its sought-after streaming content for free. The magic is about to come at a steeper price for many who’ve grown accustomed to tapping into other people’s accounts.
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