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Disney Plus' password sharing crackdown begins soon

2024-04-05 18:04 by


Disney+ to fully crack down on password sharing by fall 2024. Disney CEO Bob Iger today gave a clearer timeline on when it'll impose the account-sharing restrictions. "In June, we'll be launching our first real foray into password sharing" in a few countries before expanding to a "full rollout" in September, he said in an interview with CNBC.

"Beginning this summer, Disney Plus accounts suspected of improper sharing will be presented with new capabilities to allow their borrowers to start their own subscriptions," CFO Hugh Johnston said during the earnings call. "Later this calendar year, account holders who want to allow access to individuals from outside their household will be able to add them to their accounts for an additional fee."

The initial communications to Disney+, Hulu and ESPN+ customers will prompt password-borrowers to start their own subscriptions, the company has said previously. Later in 2024, account holders who want allow access to individuals outside their household will be able to add them for an additional fee.

While cracking down on password-sharing among users has been on Disney's radar for a while - Iger said the number of people sharing passwords was "significant" in 2023 - Iger's comments suggest that the company hasn't really taken a hard line on this issue until now.

Cracking down now does make sense. As explained by Iger, Disney expects its streaming business to be profitable in the fourth quarter after years of losses, which reached $4 billion a year at Disney Plus at one point. However, Iger said that the company had reduced the losses in this business to $130 million in the last quarter, a drastic difference from the money-burning machine it was before.

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