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Disney+ will end password sharing in 2024 after seeing Netflix's success
Disney is cracking down on password sharing after Netflix introduced the change and saw big profits
It’s happening. After Netflix stopped password sharing between users, Disney+ will be following suit in 2024.
And it’s easy to see why. Despite an initial backlash, Netflix’s password sharing crackdown has worked. The streamer posted huge profits after implementing the change. The popular streaming service gained 5.9 million new subscribers, and only suffered a limited number of cancelations as a result of the new policy.
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Disney has clearly taken notice, as it will begin cracking down on password sharing in 2024 in a bid to drive monetization according to Disney CEO Bob Iger.
➡️ The Shortcut Skinny: Disney+ password sharing
🔒 Disney’s CEO Bob Iger has said the company will crack down on password sharing in the future
🪞 The move would mirror Netflix’s password sharing crackdown
📈 Netflix saw a huge increase in new subscribers and profits after the move
🤷♂️ But with streamers continuing to cost more each month, it’s becoming hard to justify subscribing to them all
“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger said during the company’s third-quarter earnings call (thanks, The Wrap). “Later this year, we will begin to update our subscriber agreements with additional terms and our sharing policies. And we will roll out tactics to drive monetization sometime in 2024.”
Iger implied that the company is already aware of how many users are sharing passwords with each other, suggesting there’s a significant of money to be made if the new rule comes into place.
Disney+ and Hulu became more expensive in December last year. Disney+ Premium increased by $3 per month and Hulu Premium increased by $2 per month. In an effort to reduce costs, Disney cut dozens of TV shows and movies from its library. Willow was the most notable casualty as it was only available to stream for six months.
With so many streaming services to choose from, all vying for a small chunk of your paycheck each month, it’s disappointing to see companies continue to tighten their rules further while charging more. Obviously, as a business, profits are paramount, but I wouldn’t blame some consumers for cutting down on which streamers they subscribe to as it’s becoming untenable to pay for them all.