Since returning to The Walt Disney Company in November 2022, things have not been easy for CEO Bob Iger. He had to deal with struggling theme parks, a low stock price, and Disney’s constant problem child, Disney+.
In less than two years, Iger has managed to turn a lot of things around and Disney is heading in a positive direction, but Disney+ remains an issue.
Back in August, Iger announced that Disney would begin cracking down on people who were sharing their Disney+ password with people outside their homes.
The announcement came just a couple of months after Netflix ended its password sharing — and the company wasn’t hurt financially as many thought it would be.
When he first shared news of the password crackdown, the Disney CEO did not have a specific date in mind, but said that it would most likely happen sometime in 2024. However, he did admit that it could happen in 2025. Everything depended on where the company found itself and when it would be in the position to do so.
Well, the time has come, and Disney+ subscribers were told that their password-sharing was coming to an end.
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During the company’s first-quarter fiscal earnings call, Disney CFO Hugh Johnston said that Disney+ subscribers were already being emailed about the changes in their subscriber agreement.
The updated terms and conditions explicitly forbid account sharing. Disney will start enforcing those terms beginning March 14.
Johnston also said that this summer, accounts suspected of “improper sharing” would be given the chance to start their own account. Later this year, subscribers who wish to add additional users to their account will be able to do so, for an additional price. He did not say what that price point would be.
Per Variety, Johnston’s statement reads:
“We’re still in the early days…We want to reach as large an audience as possible with our outstanding content. And we’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base.”
He said that, much like Netflix, the company does not expect to take a very big hit from eliminating password sharing. The company already cracked down on password sharing for its Canadian subscribers back in November.
However, Bob Iger did reveal during the call that Disney+ had lost 1.3 million subscribers. The massive drop came when pricing for the Disney+ ad-free tier went from $10.99 to $13.99 back in October. But the company is remaining positive, and expects to pull in another five to six million subscribers by the end of March.
Do you think Disney+ should end password sharing? Let us know in the comments!