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The streaming service is following in the footsteps of Netflix, as it plans to tackle password sharing in a few countries in June before launching a full roll-out in September.
Disney has revealed that its password sharing crackdown for Disney+ is set to begin in June, as the streaming service moves to boost its revenue further.
In an interview with CNBC, Disney CEO Bob Iger said the move is part of a plan for the company’s streaming service to become profitable by its fourth fiscal quarter of this year and to turn itself into a “growth business”.
“In June we’ll be launching our first foray into password sharing,” Iger said in the interview. “Just a few countries, in a few markets. But then it will grow significantly with a full roll-out in September”.
The move by Disney+ follows a similar move made by its main rival Netflix, which first started its own password sharing crackdown in 2023. Netflix’s roll-out hit Irish customers in May 2023.
Iger discussed various plans that Disney+ is making to improve its profitability and said the company aims to reduce the cost of marketing, customer acquisition and “get the margins up, obviously”.
“We have to increase engagement,” Iger said. “We need the technological tools to lower churn, create more stickiness. It’s things like recommendation engines, getting to know our customers better.”
Disney+ confirmed that it was looking into password sharing last August after its subscriber numbers for the quarter declined more than expected – a 7.4pc decline – though Disney’s streaming losses narrowed in the same period.
At the time, Iger said the move to tackle password sharing was a “real priority” and an effort to further grow the business. Disney has taken steps since then to make its streaming service more appealing, such as the recent launch of a combined Disney+ and Hulu offering.
When asked in the interview if Disney+ could ever get to the margins that Netflix has, Iger said it “would be a little premature” to say yes to that, but reiterated that the company wants its streaming service to be a “growth business”.
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