Disney+ to Start Full Password-Sharing Crackdown inSeptember

Disney+ to Start Full Password-Sharing Crackdown inSeptember


Expect Disney+ to fully crack down on password sharing by fall 2024.

Disney CEO Bob Iger today gave a clearer timeline on when it’ll impose the account-sharing restrictions. “In June, we’ll be launching our first real foray into password sharing” in a few countries before expanding to a “full rollout” in September, he said in an interview with CNBC.

He didn’t say if the US will be in that first group. But the company has already laid the groundwork for the crackdown by testing account restrictions in Canada and updating the subscriber agreements for both Disney+ and Hulu, which it also owns.

The impending crackdown will no doubt annoy users, especially after Netflix instituted its own efforts to stop password sharing. Max, also known as HBO Max, will do the same later this year.

In Disney’s case, Iger said the password crackdown is necessary to make Disney+ profitable by this year’s fiscal fourth quarter. According to him, the streaming service has lost more money than expected, despite attracting nearly 150 million subscribers since launch.

“I came back [as CEO and] the losses were about $4 billion a year,” he said. “It was clear that was not sustainable and not acceptable.”

To make Disney+ both profitable and a “growth business,” Iger said he’s focused on finding ways to boost engagement and user “stickiness’ to keep subscribers hooked. This includes integrating Hulu into Disney+, and coming up with better programming to lure users outside the US. “We have the goods, now we need to execute,” he said.

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