Disney Plus is Cracking Down on Password Sharing

disney plus

Disney Plus is the latest streaming platform to crack down on password sharing, and it will start this June. CEO Bob Iger announced in an interview with CNBC. The crackdown began in Canada last fall, but the company is now taking it to more markets.

In February, Disney-owned Hulu revised its Terms of Service to forbid password sharing outside of “your primary personal residence.” Subscribers who do not comply with the terms risk having their account limited or terminated. The announcement from Disney CEO Bob Iger is no surprise, in February, the company announced it will officially start clamping down on password sharing this summer, and CFO Hugh Johnston stated that accounts “suspected of improper sharing” will be promoted to make subscriptions of their own.

“Paid sharing is an opportunity for us,” Johnston stated during the earnings call in February. “It’s one that our competitor is obviously taking advantage of, and one that sits in front of us … We’ve got some very specific actions that we’re taking in the next couple of months.” Netflix began its crackdown last year, and the move is already yielding positive results for the company. According to Antenna, Netflix had the four single largest days of US user acquisition in the four and a half years since it started gathering streaming data. This led to nearly 100,000 sign-ups on May 26th and 27th. During the same period the crackdown was rolled out in the US, average daily sign-ups reached 73,000, which is proportional to a 102 per cent increase from the previous 60-day average.

Iger said the company’s first “real foray into password sharing” will begin with “just a few countries and a few markets, but then it will grow significantly with a full rollout in September.” In the US, Disney Plus costs $14 monthly ($140 annually) for ad-free viewing and $8 monthly with ads.

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