Disney has become the next streaming service to join the fight against password sharing.
The company is currently exploring ways to stop the practice and will announce its plans at some point this year.
Disney to start cracking down on password sharing in 2024
During its Q3 fiscal earnings call, Disney revealed that it plans to put a stop to password sharing.
CEO Bob Iger didn’t give exact figures but he said that a significant number of users are sharing accounts. He also reported that the company is actively looking for a solution to the problem.
The streaming giant plans to announce its new account-sharing terms later this year and implement them in 2024.
Iger said he’s not sure how many friends and family members of current users will convert, but he expects the number of subscribers to grow.
Another big update from Disney is its second price increase this year.
From October 12, the Disney+ ad-free deal will go up from $10.99 to $13.99 per month. This is double the $6.99 the streaming service used to charge when it first entered the field in 2019.
The company is looking to achieve streaming profitability by the end of 2024. In the most recent quarter, it reported a loss of $512 million, signaling there’s a long road ahead.
Experts believe 2025 is a more likely timeframe for Disney’s streaming profitability to reach the desired stage.
Duplicating Netflix’s efforts
Fans of streaming services have heard a lot about putting an end to password sharing recently. In fact, Disney has apparently borrowed this strategy from Netflix.
The most popular streaming service cracked down on the practice by requiring users to establish a Netflix household.
To have someone access the account from another household, they have to pay an additional $7.99 per month.
While the initial reactions to the change were negative, Netflix gained 5.9 million new subscribers during the second quarter of 2023.
Its share price also went up by 45%.
Third Bridge analyst Jamie Lumley revealed that many streaming platforms were looking to prevent users from sharing their accounts. However, they first wanted to see how Netflix would handle the situation.
The recent strikes in Hollywood have proven how unsustainable streaming really is. While price hikes are never convenient, they might be a good solution to facilitate fair pay across the board.