Disney+ is set to implement strict measures to crack down on password-sharing within its platform, starting with users in Canada. Recently, an email was sent to subscribers informing them of an updated Subscriber Agreement that includes new restrictions on account sharing. While account sharing has always been forbidden according to the written permissions agreement, Disney did not actively enforce this rule. However, as of November 1, password-sharing will no longer be allowed in Canada, transforming it from an unspoken rule to an official regulation.
Interestingly, the fine print in the updated Subscriber Agreement hints at a potential exception to the prohibition on password-sharing. The agreement states that account sharing is not allowed, “unless otherwise permitted by your service tier.” This suggests that Disney+ may follow in the footsteps of Netflix by introducing a higher-priced tier that allows for password-sharing. This strategy could provide an additional revenue stream for Disney, akin to Netflix’s successful implementation of account-sharing fees.
The crackdown on password-sharing comes as no surprise, as Disney CEO Bob Iger revealed in August that the company was actively exploring ways to address this issue. He expressed the plan to introduce new subscriber agreements with “additional terms” and updates to “sharing policies” in 2023. With these changes now being implemented in Canada, it is evident that Disney views password-sharing as a significant concern that needs immediate attention. Iger believes that cracking down on account-sharing is crucial for the growth and monetization of Disney+.
Netflix provides a case study for Disney to draw inspiration from. When Netflix cracked down on password-sharing, the streaming giant witnessed a surge in subscribers. In fact, it was estimated that around 100 million Netflix accounts were previously sharing passwords before the company started charging fees. Disney hopes to replicate this success by implementing its own measures to discourage password-sharing. By doing so, Disney expects to see an acceleration in its subscriber base and thereby grow its business.
Apart from combating password-sharing, Disney is also aiming to boost its revenue by implementing price hikes for Disney+ and Hulu. The ad-free plan for Disney+ will increase from $11/month to $14/month, while the ad-free version of Hulu will see a jump from $15/month to $18/month. These price adjustments will take effect on October 12, signaling Disney’s intention to capitalize on the popularity of its streaming services and generate more income.
As Disney embarks on this journey to crack down on password-sharing, it signifies the company’s commitment to protecting its intellectual property and ensuring fair usage of its service. By enforcing stricter regulations, Disney aims to create a more sustainable and profitable business model. Moreover, the increased revenue from price hikes will help support the production of high-quality content, further enhancing the Disney+ experience for subscribers worldwide.
Disney’s decision to crack down on password-sharing for Disney+ is a strategic move aimed at increasing revenue, protecting its content, and driving long-term growth. By implementing stricter regulations and potentially introducing new service tiers, Disney hopes to replicate the success of Netflix in deterring password-sharing and ultimately monetizing its streaming platform more effectively. With the upcoming price hikes, Disney is solidifying its position in the streaming industry and positioning itself for a prosperous future.
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