The subscriber agreement for Disney's streaming service Disney+ was already updated, and now, we know when the company will start to enforce those sharing their passwords with people living outside the account holder's home in just a few months. Speaking to CNBC, Disney CEO Bob Iger revealed that Disney is "launching [its] first real foray into password sharing" sometime this June.
Iger went on to say that that it would start the rollout "in just a few countries in a few markets" but did not reveal which; however, he did explain that the password crackdown would expand to all subscribers by September 2024. The anti-password sharing rules went into effect for new Disney+ members on January 25 and were rolled out to existing subscribers on March 14. According to Disney's terms, Disney+ customers may not share their accounts with people outside their primary household residence, unless it's permitted for their tier. The agreement mentions that Disney may check for compliance by reviewing your usage habits and choosing to "limit or terminate access."
During Disney's earnings call in February, the chief financial officer of the company, Hugh Johnston, said that users "suspected of improper sharing" will see a prompt to sign up for their own subscription this summer. For an "additional fee", subscribers will be able to add members outside their household, but Disney still hasn't shared any details on the cost of this option.
Last year, Netflix became the first streaming service to crack down on password sharing, as it started charging subscribers an extra $7.99 per month to add an extra user outside their home. Netflix saw a significant increase in subscribers after it began cracking down on password sharing and raising the price of some of its subscription tiers. Warner Bros. Discovery also announced its plans to start cracking down on password sharing for its streaming service Max.
Iger's announcement comes over a week after Disney combined the Hulu and Disney+ apps in the United States after Disney purchased the remaining ownership stake of Hulu from Comcast in 2023. The move, which consolidates the libraries of both streaming services into Disney+ and also combines a user's watch history from both platforms if they have the Disney+ bundle, is an attempt to bring more subscribers toward its lucrative streaming bundle.
“We feel great about the engagement of those Disney subs who are not getting Hulu who are now watching more programs that were on Hulu, including Shogun,” Iger says in CNBC's interview. “We have to increase engagement. We need the technological tools to lower churn, create more stickiness. It’s things like recommendation engines, getting to know our customers better.”
