This summer, Disney Plus will begin to tighten down on password sharing.
This summer is when Disney’s crackdown on password sharing will formally start. Disney chief financial officer Hugh Johnston stated that Disney Plus users “suspected of improper sharing” will have the opportunity to subscribe on their own during a teleconference with investors on Wednesday.
Disney has announced that account users will now be able to add individuals from outside their homes for an “additional fee”; however, the exact amount was not disclosed. “With our exceptional content, we hope to reach as many people as we can,” Johnston stated. “We are eager to introduce this new feature in order to enhance the general customer experience and increase the number of subscribers we have.”
Disney Plus and Hulu have revised their terms of service this year to prohibit consumers from sharing their memberships with anyone who is not a member of their household. Starting January 25, the revised conditions became effective for new subscribers; however, starting March 14, they will also apply to current members. A variant of paid sharing was previously introduced by Netflix last year; users had to pay an additional $7.99 a month to add a person who wasn’t at home.
Johnston continued, “Paid sharing is an opportunity for us.” It’s there in front of us and one that our rival is blatantly abusing. We will be implementing a few very specific measures over the next few months.
This is happening while Disney Plus prepares to provide a one-app experience with Hulu in March following its test release earlier this year. Disney Plus lost 1.3 million customers in the US and Canada as a result of pricing increases last year, according to the company’s earnings report, while Hulu gained 1.2 million new users.
The Disney-owned ESPN said on Tuesday that it will be collaborating with Fox and Warner Bros. Discovery to introduce a brand-new live sports streaming service. This autumn, the as-yet-unnamed service will go live and be accessible to Disney Plus package customers who also have access to Hulu and ESPN Plus. The service’s announcement coincides with Disney’s intentions to release an ESPN direct-to-consumer version in August 2025, signalling a move away from pay TV in the face of a deteriorating viewership and shrinking ad market.
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