In a strategic move aimed at boosting monetization efforts, Disney CEO Bob Iger announced on Wednesday that Disney+ will be taking measures to crack down on password-sharing, with enforcement expected to commence in 2024. Speaking during the company’s third-quarter earnings call, Iger detailed the forthcoming steps that Disney+ plans to undertake to address the issue of account sharing among its subscribers.
“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger revealed. “Later this year, we will begin to update our subscriber agreements with additional terms and our sharing policies. And we will roll out tactics to drive monetization sometime in 2024.”
This decision comes in response to the notable success Netflix experienced after implementing a similar strategy to curb password-sharing, leading to a significant surge in its paid subscriber base this year.
When queried about the extent of their capability to monitor password-sharing, Iger responded to an analyst’s question by saying, “We already have the technical capability to monitor much of this, and I’m not gonna give you a specific number except to say it’s significant.” He also mentioned that while the password-sharing crackdown might extend beyond 2024, the initiative is being approached as a top priority to help foster business growth.
Iger emphasized the importance of Disney+ as one of the key drivers of the company’s growth strategy, naming it alongside the film studios and parks business.
“Moving forward, I believe three businesses will drive the greatest growth and value creation over the next five years,” Iger outlined. “They are our film studios, our parks business, and streaming, all of which are inextricably linked to our brands and franchises.”
During the past quarter, Disney+ faced a minor setback as it lost 300,000 subscribers in the U.S. and Canada, bringing its global total to 46 million. However, the company reported an uptick in domestic Disney+ average monthly revenue per paid subscriber, which climbed from $7.14 to $7.31, attributed to higher per-subscriber advertising revenue.
To diversify its offerings, Disney+ also revealed plans to introduce an ad-supported subscription option in select European markets and Canada starting November 1. Moreover, subscribers in the U.S. will gain access to a new ad-free bundled subscription plan, set to launch on September 6. This subscription, priced at $19.99 per month, will include Disney+ Premium and Hulu (No Ads).
With these new measures in place, Disney+ aims to maintain its stronghold in the streaming market and capitalize on its iconic brands and franchises to ensure long-term growth and success.