Netflix started a trend back in 2022 and it required all the prominent OTT platforms to take action against password-sharing. It was not a nice step for users as they loved to share passwords and subscription fees. Now that Netflix has skyrocketed their revenues after this action. Other platforms are following the trail. Disney is stepping up its efforts to combat password sharing among subscribers to its streaming services. Starting this summer in June, users outside the main household who are illicitly using shared passwords may face disconnection if they don’t pay up for their own subscriptions.
Disney CEO Bob Iger revealed plans for this crackdown during an interview on CNBC. The initiative, set to launch in June in select countries before a full rollout in September, marks the company’s “first real foray into password sharing enforcement.”
To achieve this, Disney is not only cracking down on password sharing but also focusing on technological enhancements to increase customer engagement and reduce churn rates. The integration of Hulu on Disney+ is also a part of the bigger plan.
The updated subscriber terms for Disney+, Hulu, and ESPN+ explicitly prohibit sharing log-in details outside the primary household. Violations may result in access limitations or termination, as determined by Disney. The terms and conditions are mostly the same as Netflix proposed.
As of the end of 2023, Disney+ had over 111 million subscribers, Hulu had nearly 50 million, and ESPN+ had over 25 million. Despite this, Disney+ experienced a net loss of subscribers in its core markets in the last quarter of 2023 due to price hikes.
The main reason behind this is the extremely poor content from Disney+. Most of the originals that are not from Marvel, Star Wars or Nat Geo are practically unwatchable. Let’s see if this step finally helps Disney+ to bounce.