Disney+ is all set to follow Netflix’s strategy by implementing a password-sharing ban among its subscribers, starting in June this year. The announcement came from the CEO of Walt Disney, Bob Iger, who revealed that initially the password-sharing restrictions will just be limited to a few countries. However, the comprehensive implementation of this strategy will be effective from September.
The decision was taken after Igor and his team saw what Netflix could achieve after the password-sharing crackdown in 2023. Reportedly, Netflix experienced an increase in its sign-up by adding over 16 million new subscribers in the first nine months of 2023.
Bob Iger in an interview with CNBC said, “Netflix is the gold standard in streaming.” “They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great.”
Disney’s streaming services, including ESPN Plus, have been operating at a loss, despite experiencing steady growth in subscribers. However, the recent implementation of a password crackdown, aimed at curbing unauthorized account access, is seen as a potential contributor to achieving the goal of becoming profitable soon.
Disney has also recently unveiled the combined Disney Plus and Hulu app in late March to add more subscribers to its streaming bundle. This integration enhances personalized recommendations by not only consolidating content from both platforms but also synchronising users’ watch histories. Furthermore, Hulu has also implemented measures to limit account login sharing outside their households, effective from March 14th.
Bob Iger said, “We feel great about the engagement of those Disney subs who are not getting Hulu who are now watching more programs that were on Hulu, including Shogun.” “We have to increase engagement. We need the technological tools to lower churn, create more stickiness. It’s things like recommendation engines, getting to know our customers better.”
