During a recent earnings call, Disney CEO Bob Iger revealed the company’s intention to crack down on password sharing for its streaming services Disney+ and Hulu. Password sharing among subscribers of streaming services has been a common practice for years, but companies are now looking to clamp down on this in order to increase profits.
This move mirrors Netflix’s decision to implement stricter policies regarding password sharing. Earlier this year, Netflix restricted account access to one household in an effort to curb the practice. Now, it seems that Disney+ and Hulu will be following in Netflix’s footsteps.
During Disney’s Q3 earnings call, Iger announced that the company would be exploring ways to develop stricter policies regarding password sharing. These new policies are expected to be rolled out sometime in 2024. Iger did not provide specific details about the measures Disney+ and Hulu plan to implement, but he did emphasize that the issue of password sharing had become “significant” for the company.
Password sharing has long been a topic of discussion within the streaming industry. On one hand, it allows subscribers to share the cost of multiple subscriptions, making streaming more affordable for many households. On the other hand, it poses a challenge for streaming companies who are looking to increase their revenue and ensure that each subscriber is paying for their own account.
As streaming services continue to grow in popularity and competition intensifies in the market, companies are becoming more focused on monetizing their platforms. Implementing stricter policies around password sharing is seen as a way to maximize revenue and ensure that each user is paying their fair share.
While the specifics of Disney’s plans are not yet known, it is likely that the company will implement measures to limit password sharing to one household, similar to what Netflix has done. This would require users to verify their account information and potentially provide proof of residency in order to access their streaming services.
Overall, the move to crack down on password sharing demonstrates the shift in the streaming industry as companies seek to capitalize on their platforms and increase profits. It remains to be seen how subscribers will react to these changes and whether they will continue to share passwords or opt for individual subscriptions.
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