Following in the footsteps of the popular Netflix, Disney plans to crack down on password sharing, starting in June in an effort to increase paid subscribers.
In an interview with CNBC, Disney CEO Bob Iger said that the password crackdown will begin in June in some countries and should be implemented globally by September. He didn’t specify which markets will bear the brunt of this decision but remains hopeful that it will increase revenues and profits.
“Netflix is the gold standard in streaming. They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great,” Iger said in the interview.
The move comes as a response to Netflix’s increased signups after it cracked down on password sharing last year in May — adding over 100,000 accounts within two days of cracking down. In Q4 2023, Netflix added a record 13 million new subscribers, which was attributed to the password crackdown.
Last May, Netflix started hindering services of people who don’t live in the same household as the primary subscriber and Disney is looking to take the same route to pump up their subscriber numbers and revenue.
“When I came around, losses were around $4 billion a year, which wasn’t sustainable or acceptable. The goal was first to reduce the losses and we expect to be profitable in Q4 2024,” he added.
Disney+ also integrated content from Hulu into its US platform last week. The company is also expected to launch a standalone ESPN streaming service next year.
In India, Disney+Hotstar suffered huge losses in the millions — both in revenue and number of subscribers — and have merged with JioCinema. If at all, it’s unclear how the password crackdown will affect Disney’s Indian subscribers or if Jio will hop on the bandwagon alongside Disney to make the crackdown happen in the country.
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