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Disney knows you’re sharing that streaming password, and it’s going to unleash a Netflix-style crackdown

Facing a subscriber loss, the entertainment giant is done being lenient with password sharing, according to CEO Bob Iger.

Disney knows you’re sharing that streaming password, and it’s going to unleash a Netflix-style crackdown
[Source photo: Disney, rawpixel.com]

Netflix was just the beginning. Now CEO Bob Iger has announced that the Walt Disney Company will begin cracking down on Disney Plus password sharing next year. The crackdown announcement came after Disney revealed its streaming division lost over half a billion dollars in Q3 2023 (via CNBC).

Iger announced the news on Disney’s quarterly earnings call yesterday. The Disney boss revealed that the company already has technology in place to see who is sharing their Disney Plus passwords—and it appears to be many.

“I’m not going to give a specific number, except to say that it is significant,” Iger said.

Iger said the password-sharing crackdown was a “real priority” for the company and its crackdown would commence in 2024. However, it won’t be completed that year. The Disney Plus password-sharing crackdown follows the password-sharing crackdown Netflix implemented in May, which appears to have been somewhat successful. Despite many predicting Netflix’s crackdown would see the world’s best-known streamer lose subscribers, Netflix gained 5.9 million subscribers for the quarter the password-sharing crackdown went into effect.

Disney is obviously hoping for its password-sharing crackdown to have the same effect.

Besides announcing the crackdown, Disney is also introducing other changes in the form of higher monthly subscription costs:

  • Disney Plus: The cost of an ad-free Disney Plus subscription will jump 27% on October 12 to $13.99 per month. The ads-subsidized plan will remain at its current price of $7.99 per month.
  • Hulu: Disney is also raising the price of ad-free Hulu by 20% to $17.99 per month. The ads-subsidized version of Hulu will remain at $7.99 per month.

Shares of Disney stock were up 1.25% on Thursday in premarket trading.

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Michael Grothaus is a novelist, journalist, and former screenwriter. His debut novel EPIPHANY JONES is out now from Orenda Books. You can read more about him at MichaelGrothaus.com More

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