Disney’s CEO Bob Iger has confirmed that Disney will soon enforce new policies to deter users from sharing their account details. The crackdown on password sharing for Disney Plus is scheduled to start in June.
This initiative has been in development for some time, with plans originating last year. The implementation of these new measures initially impacted Disney Plus subscribers in Canada, as announced in November. In January of this year, U.S. users were also informed about changes in the terms of service, particularly concerning the sharing of login credentials with individuals outside their households. While primarily targeting new users, these regulations became applicable to all subscribers in March.
Disney Plus Initiates Crackdown on Password Sharing in June
As reported by The Verge, Disney’s chief financial officer, Hugh Johnston, revealed during an earnings call in February that individuals sharing accounts would be required to obtain their own subscriptions. He also mentioned the option for subscribers to include additional members for a fee.
Further details have surfaced about Disney Plus’ limitations on password sharing. In an interview with CNBC, Iger mentioned that the initial clampdown on password sharing would commence in June 2024. The restrictions are anticipated to become more stringent before the full enforcement for all users, expected in September.
Disney Plus Subscription Options
Let’s delve into Disney’s streaming services. Disney Plus offers two main subscription plans. The Disney+ Basic plan, priced at $7.99 per month, includes advertisements. Conversely, the ad-free Disney+ Premium plan costs $13.99/month and allows unlimited downloads on up to 10 devices.
Disney recently incorporated Hulu in its bundle offerings to attract more users. For example, the Disney Bundle Duo Basic plan with ads is available for $9.99 per month, while the ad-free Disney Bundle Duo Premium is priced at $19.99/month. Sports enthusiasts can opt for the Disney Bundle Trio Basic bundle, priced at $14.99/month, which includes ESPN+ alongside Disney+ and Hulu, all with ads. An ad-free experience with the Disney Bundle Trio Premium bundle costs $24.99/month.
Streaming services have witnessed several price increases over the past year, with the introduction of ads presenting added hurdles. Netflix was the first to tackle password sharing among its users. Despite initial concerns, this action proved successful, attracting over 23 million monthly users on its ad-supported plan as of January 2024. Consequently, Disney appears eager to replicate this success. Although not beneficial for consumers financially, this transition was likely inevitable from a business standpoint. Iger acknowledged Netflix as the primary benchmark in streaming, with Disney securely holding the No. 2 position.
It is plausible to expect Disney to introduce an additional member fee similar to Netflix, priced at $7.99 per month for Standard and Premium plans, while maintaining the pricing for the Disney+ Basic plan to encourage individual subscriptions.
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