The Upcoming Disney+ Password Crackdown: What You Need to Know

Starting September 2024, Disney+ will intensify its efforts to curb password sharing, a move that follows months of speculation and preliminary actions in select markets. Announced by Disney CEO Bob Iger during the company’s Q3 2024 earnings call, this initiative aims to prevent users from sharing their accounts with individuals outside their households.

Disney began this crackdown in June 2024, targeting a few international markets. However, the full-scale implementation will commence in September, affecting users globally, including those in the United States. Iger emphasized that the company is focused on enhancing its technological capabilities to ensure higher returns and a more robust business model.

“We’ve been talking a lot about adding the technology features that we need to basically make it a higher return, higher margin business, and a more successful business. And we’re doing that right now,” Iger said. He further noted that the initial phase has not faced any significant backlash, indicating a smooth transition to the stricter policies.

The rationale behind this crackdown is primarily financial. By restricting password sharing, Disney hopes to increase its subscriber base and revenue. This strategy mirrors Netflix’s approach, which saw a substantial rise in subscriptions following its own password-sharing crackdown in May 2023. Netflix introduced an additional fee for users sharing their accounts with people outside their household, resulting in an 8.8 million subscriber increase in the following quarter.

Disney+ subscribers should be prepared for similar changes. While specific details on how the crackdown will be enforced are still unclear, it’s likely that Disney will introduce a fee for adding extra members outside the primary account holder’s household. This move aims to push non-primary users to either subscribe independently or contribute to the additional member fee.

In addition to the password-sharing restrictions, Disney+ is also set to increase its subscription fees. Starting October 17, 2024, the ad-free version of the service will cost $15.99 per month, a significant jump from its initial launch price in 2019. Disney+ with advertising will also see an increase jumping $2/month to $9.99.  This price hike is part of Disney’s broader strategy to boost profitability in its streaming business, which reported its first-ever profit this quarter.

As Disney+ tightens its policies, subscribers must adapt to these changes, whether by adhering to the new sharing rules or absorbing the increased costs. This crackdown signifies a pivotal shift in how streaming services are combating unauthorized account sharing, reflecting a broader industry trend towards maximizing revenue and ensuring the sustainability of their business models.

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