Disney+ has been a popular streaming platform since its launch a few years ago. People have been sharing their passwords with friends and family to watch shows like Star Wars without any extra cost. However, Disney CEO Bob Iger recently announced that this practice will no longer be allowed starting in September.
In an earnings call, Iger stated that Disney is implementing stricter password sharing policies to make the service more profitable. This initiative started in June and will be enforced more rigorously in September. Despite this crackdown, Iger mentioned that there hasn’t been any significant backlash from customers.
In addition to the password sharing policy, Disney has also announced a price increase for Disney+, Hulu, and ESPN+. This will be the fourth price hike since the launch of the service, with the ad-free version of Disney+ now costing $16 per month, up from $7 in 2019.
While some may be unhappy about the increased prices and the crackdown on password sharing, Disney is seeing success in its streaming services. By raising prices and implementing stricter policies, Disney is making its streaming business more profitable, unlike other companies in the industry.
This move by Disney reflects a broader trend in the streaming industry, where companies are looking for ways to increase revenue and prevent unauthorized account access. As streaming services become more popular, ensuring that users are paying for their own accounts is crucial for the long-term sustainability of these platforms.
Overall, while the changes may not be well-received by all customers, Disney’s focus on profitability and sustainability in its streaming business is a strategic move that will likely benefit the company in the long run. As the streaming landscape continues to evolve, we can expect more companies to follow suit and implement similar policies to protect their bottom line.