In a bid to increase sign-ups and revenue for its streaming service, Disney+ is set to take action against password sharing, with plans for a crackdown starting later this year.
Bob Iger, Disney’s chief executive, revealed in an interview with the American network CNBC that the platform would initiate measures against password sharing from June in certain countries, with a full rollout planned for September.
Password sharing has long been a challenge for major streaming services, as users share their login credentials with friends and family members who are not part of the same household. While convenient for users, this practice violates platform rules and deprives streaming services of potential revenue.
Speaking to CNBC about the upcoming crackdown, Mr Iger stated that Disney+ would be making its “first real foray into password sharing” in June. He emphasized that this move aims to transform the streaming business into one that Disney feels genuinely positive about.
Disney+ follows in the footsteps of other streaming platforms in addressing the issue of password sharing. Netflix, for example, recently implemented measures to curb this practice, attributing a surge in new subscribers to its crackdown.
“Netflix is the gold standard in streaming,” acknowledged Mr Iger. “They’ve done a phenomenal job in many different directions. I have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great.”
The move by Disney+ underscores the increasing competition in the streaming market and the importance of retaining paying subscribers to sustain growth and profitability. As streaming services continue to evolve, strategies to combat password sharing are likely to become more prevalent across the industry.
