Disney Plus is set to restrict password sharing outside of households. On Wednesday, Disney CEO Bob Iger announced during an earnings call that the crackdown will begin “in earnest” this September.
Disney CEO Bob Iger, said, “We started our password sharing initiative in June. That kicks in earnest in September. By the way, we’ve had no backlash at all to the notification that have gone out and to the work that we’ve already been doing.”
However, Disney’s timeline for its password-sharing crackdown has been somewhat unclear. Initially, the company announced its intention to implement paid sharing in February and began informing users of the upcoming change. By June, Disney introduced paid sharing in a “few countries,” but details on when the policy would extend to the U.S. are yet to be disclosed.
Now, it appears Disney is moving forward with plans to expand paid sharing to more subscribers in September, despite not yet revealing the pricing details. For comparison, Netflix, which introduced paid sharing last year, charges an additional $7.99 per month to add another user to an account.
Furthermore, this move coincides with Disney’s decision to raise subscription prices for its streaming services, sparking concerns about possible subscriber churn. The company plans to closely monitor how these changes affect consumer behavior and overall revenue.
On the recent price hikes on Disney’s subscriber base, Iger also voiced optimism regarding the effect. He credited this confidence to the introduction of new content, including ABC News Live and curated playlists, which he believes give Disney added “pricing leverage.”
Notably, beginning in October, the cost of Disney+ with ads will rise from $7.99 to $9.99 per month, while the ad-free version will increase from $13.99 to $15.99.