Disney is gearing up to tackle password sharing on its streaming services, mirroring a move initiated by Netflix a few months ago.
Bob Iger, the company’s CEO, acknowledged that password sharing among Disney Plus users has been noteworthy. In response, the company is actively exploring ways to address this issue.
“We currently possess the technical capacity to closely monitor a substantial portion of this [password sharing]. While I won’t provide specific figures, I can affirm that the extent is noteworthy. However, what remains uncertain is how much of this shared activity will translate into an increase in subscribers as we work to address it. While we anticipate some conversion, we’re refraining from making speculative assumptions,” he shared during the company’s Q2 2023 earnings report.
The company is set to unveil its revised account-sharing conditions by the conclusion of this year, with the implementation scheduled for a period in 2024, as indicated by Iger.
Our strategies for generating revenue from these efforts are projected to be introduced sometime in 2024,” Iger remarked.
In a similar trajectory, Disney’s contender in the streaming arena, Netflix, commenced trials of password-sharing constraints in select nations during the previous year. This endeavor’s scope was subsequently expanded to encompass regions like Canada, New Zealand, Portugal, and Spain, earlier in the current year. As May rolled around, the streaming behemoth initiated a campaign urging users to uphold the principle of sharing accounts solely within their households, with a global reach.
Streaming enterprises now find themselves navigating challenging waters, grappling with sluggish subscriber growth and a complex economic landscape. In response to these exigencies, the industry’s key players are meticulously examining their strategies. This entails contemplating actions such as raising subscription fees and implementing mechanisms like password-sharing curbs. Additionally, they are embracing innovation by introducing more budget-friendly tiers supported by advertisements, with the aim of broadening their subscriber base.
It is pertinent to note that Disney, too, has declared plans to effect substantial price adjustments for its streaming offerings, with the modifications scheduled to come into force later this year. Amidst this evolving landscape, streaming providers are strategically maneuvering to both sustain their existing user base and tap into new demographics amidst evolving viewer behaviors and preferences.
