Netflix has achieved significant success by curbing password sharing among individuals from separate households. This has resulted in a surge in subscriber numbers, prompting other industry players to keenly observe this strategy. Disney appears to be the next contender in implementing a password-sharing crackdown. During a recent earnings call, Disney’s CEO, Bob Iger, revealed the company’s intent to “actively explore ways to address account sharing.”
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Iger conveyed that Disney will introduce updates to subscriber agreements, including additional terms and sharing policies, later this year. Furthermore, the company aims to initiate tactics to bolster monetization in 2024. In parallel, Netflix has recently introduced an extra fee for users sharing accounts with individuals outside their household.
Although Iger refrained from disclosing the precise extent of password sharing across Disney’s services, he acknowledged its significance. He affirmed that the company possesses the technological capability to monitor sign-ins and intends to address this issue by 2024. While the impact might be witnessed in the 2024 calendar year, the resolution might extend beyond that timeline. Nonetheless, Iger emphasized the company’s prioritization of this matter, perceiving an opportunity for business growth.
Simultaneously, Disney unveiled a new ad-free bundle featuring Disney+ and Hulu, priced at $19.99 per month, slated to launch on September 6th in the US. This introduction coincides with a price hike for individual Disney+ and Hulu subscriptions, commencing on October 12th. The ad-free Disney+ plan will cost $13.99 per month, while the ad-free Hulu version will be $17.99 per month.
Although Disney+ subscribers slightly dipped from 46.3 million to 46 million in the US and Canada, the India-based Hotstar service experienced a substantial setback. Losing over 12 million subscribers since April, it now stands at 40.4 million. This decline is attributed to Disney losing streaming rights to the Indian Premier League (IPL) last year. Meanwhile, Disney’s other streaming services, ESPN Plus and Hulu, observed minimal fluctuations in subscriber numbers.
In a previous interview, Iger disclosed his future vision for the entertainment giant. This entails reducing spending on Marvel and Star Wars productions, and he hinted at the possibility of selling non-core cable networks such as ABC, FX, and National Geographic.
Iger highlighted three primary drivers of value creation over the next five years: film studios, parks business, and streaming, all intrinsically linked to Disney’s brands and franchises. Despite his initial two-year tenure, Iger recently extended his contract until at least 2026. Since resuming his role as CEO last year, Iger has overseen organizational changes, including layoffs and content adjustments across Hulu and Disney+.
