Disney+ is preparing to enforce new password-sharing restrictions starting next month. This decision follows nearly a year of testing account-sharing limits in different regions, beginning in Canada and later expanding to other countries. Disney CEO Bob Iger confirmed during a recent Q3 earnings call that the restrictions would take full effect in September. The goal is to prevent unauthorized users outside of the same household from accessing shared accounts.
What’s Happening & Why This Matters
Disney+ is following in the footsteps of other streaming platforms like Netflix, which recently introduced an additional fee of $7.99 per month for users accessing the service outside of the primary account holder’s household. Disney has not yet announced what it will charge for additional users, but the new policy is expected to encourage more people to sign up for individual accounts. This move is part of a broader strategy to increase subscriptions and boost revenue.
In addition to the password-sharing crackdown, Disney+ plans to raise its subscription prices starting October 17. The ad-supported tier will increase to $9.99 per month, while the ad-free option will go up to $15.99 per month. The yearly ad-free subscription will also see a $20 increase. Despite these price hikes, Iger stated during the earnings call that subscribers have not shown any backlash to the upcoming changes. The push to limit password sharing reflects an industry-wide trend as streaming platforms seek to maximize revenue and reduce account sharing, which has been a challenge for subscription-based services. By enforcing these measures, Disney+ aims to strengthen its subscriber base and encourage more users to sign up for individual accounts, which could lead to sustained growth for the platform.
TF Summary: What’s Next
As Disney+ enforces its new password-sharing restrictions and implements price increases, the company will monitor subscriber reactions and assess the impact on its growth strategy. While some users may be frustrated by the changes, Disney+ is counting on the policy to drive more people to create their own accounts. The industry will watch closely to see if these measures succeed in increasing revenue and whether they become a standard practice across other streaming services.
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