Sharing Is No Longer Caring? Disney+ Password Sharing Gets An Expiration Date

Disney is tightening its policy on password sharing for its Disney+ streaming service, aiming to boost signups and revenue. CEO Bob Iger announced in a CNBC interview that starting in June, Disney+ will begin enforcing restrictions on password sharing in some countries, with broader enforcement planned for September. While Disney’s terms of service already prohibit users from sharing login information, enforcement has been limited.

This move follows a similar initiative by Hulu, another Disney-owned streaming platform, which started limiting account sharing outside households in March. Disney's decision is influenced by Netflix's success after its crackdown on password sharing, which led to a significant increase in sign-ups. For instance, Netflix added 100,000 new accounts in just two days post-enforcement.

Disney hopes that curbing password sharing will contribute to the profitability of Disney+. Despite its popularity, the streaming service continues to operate at a loss. Iger expressed admiration for Netflix's achievements, indicating Disney's aspiration to replicate its success.

While Disney+ has streamlined its streaming business, specifics regarding the restructuring remain undisclosed. The password crackdown has been anticipated for some time, with Iger previously highlighting it as a priority to drive Disney's growth strategy.

Disney's move signals a shift towards stricter enforcement of digital access policies, aligning with industry trends and aiming to enhance the company's streaming revenue and overall business performance.