Tech News
August 6, 2023

Following Netflix, Disney Takes Action Against Password Sharing

Disney is following Netflix's lead in tackling password sharing on its streaming service. CEO Bob Iger expressed concern about the significant extent of this practice and mentioned that they have the technical capability to monitor it.

"Disney Takes Action to Curb Password Sharing on Streaming Services Following Netflix's Lead

Disney is gearing up to address the issue of password sharing on its streaming platform, a move inspired by Netflix's recent actions in the same direction. Bob Iger, the CEO of the company, expressed concern about the 'significant' extent of password sharing on Disney Plus and disclosed that the company is actively exploring strategies to manage this practice.

Iger commented, "We already possess the technical capability to monitor a considerable portion of this [password sharing]. While I can't provide an exact figure, I can confirm that it's substantial. However, what remains uncertain as we tackle this issue is the potential conversion of reduced password sharing into subscriber growth. Although we anticipate a positive impact, we refrain from speculating."

The company intends to unveil its updated account-sharing terms by the conclusion of this year, with the implementation of these measures scheduled for some point in 2024, as announced by Iger.

"Later in the year, we will enhance our subscriber agreements with additional clauses regarding our sharing policies, and we plan to initiate tactics aimed at driving monetization in 2024," affirmed Iger."

Shared credentials

Last year, Netflix, a significant competitor to Disney, initiated trials of password-sharing limitations in specific countries, and this initiative was subsequently extended to regions such as Canada, New Zealand, Portugal, and Spain earlier this year. Starting in May, Netflix began urging users to refrain from sharing accounts beyond their own households and urged the payment for additional accounts globally.

Streaming companies are currently navigating a challenging landscape, grappling with sluggish subscriber growth compounded by challenging economic conditions. The industry leaders are exploring multiple strategies, including price adjustments and measures like password-sharing restrictions. Additionally, they are considering the introduction of a more affordable ad-supported subscription tier to attract a broader subscriber base.

Disney, responding to these dynamics, also announced significant price increases for its streaming subscriptions, set to take effect later this year. This move indicates Disney's strategic approach to maintain its competitiveness while ensuring the sustainability of its streaming services.

Source: Techcrunch

Shahin Alam

Technical Content Writer

I am a designer & business analyst. Throughout my career, I just did not design interfaces. I helped my client to build a business as well. I have focused on how human psychology, design, and technology intersect. It is this awareness and understanding that leads me to distill complex problems into simple and elegant solutions.

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