Disney Plus is set to implement significant changes to its streaming services, following a path similar to Netflix. Starting in September, the company will crack down on password sharing, limiting access to accounts within a single household. This move aims to boost revenue and maintain profitability after the streaming platforms recently turned a profit for the first time.
Password-Sharing Crackdown
Disney CEO Bob Iger announced that the company will “in earnest” enforce rules against password sharing outside households in September. This decision aligns with Netflix’s strategy, which introduced paid sharing last year. While Disney hasn’t disclosed the additional cost for paid sharing yet, it’s expected to be similar to Netflix’s $7.99 monthly fee.
Disney has been gradually preparing users for this change, notifying them about the upcoming restrictions. Despite initial concerns, Netflix’s crackdown has been largely accepted by users, and Iger noted that Disney hasn’t faced significant backlash either.
Subscription Price Increases
In addition to restricting password sharing, Disney will increase subscription prices for Disney Plus, Hulu, and ESPN Plus in October. Iger expressed confidence that this won’t lead to a substantial loss of subscribers, citing plans to add more value through new content like ABC News Live and curated playlists.
Profitability and Future Outlook
These changes come after Disney Plus, Hulu, and ESPN Plus turned a profit for the first time this quarter. The company aims to sustain this profitability by enhancing revenue streams through paid sharing and higher subscription costs.
Disney’s decision to follow Netflix’s model reflects a broader trend in the streaming industry. As platforms mature, they are seeking ways to monetize their services and ensure fair compensation for their content. While some users may be unhappy with the changes, they are likely necessary for the long-term sustainability of these platforms.
(Despite initial concerns, Netflix’s crackdown has been largely accepted by users, and Iger noted that Disney hasn’t faced significant backlash either.)
Wrong. I’m sure they have faced backlash but just don’t care.