Disney is "actively exploring" ways to limit password sharing

Disney CEO Bob Iger says the company will update its subscriber agreements later this year.

Aug 10, 2023 - 15:37
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Disney is "actively exploring" ways to limit password sharing

Netflix Disney could be the next company to crack down on password sharing. Disney CEO Bob Iger said on Wednesday's earnings call that the company is "actively exploring opportunities to share accounts."

Iger added that Disney "will begin updating our subscriber agreements with additional terms and sharing policies" later this year and "implement tactics to drive monetization" in 2024. Netflix began charging users an extra fee to share their accounts with someone. out of the household earlier this year.

Asked how many people share passwords on Disney services, Iger declined to give a number but said it was "significant." He also added that the company has the "technical capabilities" to control the recording and that the company plans to address the problem in 2024. "Although you will probably see some impact on the 24th, it is possible that... the work will not be completed within a calendar year”, said Iger. "But we've certainly made it a real priority and we really believe there's an opportunity here to help us grow our business."

In addition, Disney announced a new $19.99 ad-free monthly plan with Disney Plus and Hulu, which will launch in the US on September 6. With the introduction of the package, the prices of individual subscriptions to Disney Plus and Hulu will increase on October 12. While the ad-free Disney Plus plan costs $13.99 per month (up from $10.99), the ad-free version of Hulu costs $17.99 per month (up from $14.99). Ad-supported plans for both services remain unchanged. While Disney Plus subscribers in the US and Canada dipped slightly from 46.3 million to 46 million, India-based Disney's Hotstar service took a huge hit. Since April, the service has lost more than 12 million subscribers, leaving 40.4 million on the service. This decline is likely related to the loss of the streaming rights to the Indian Premier League (IPL) last year. Subscriptions to Disney's other streaming services, ESPN Plus and Hulu, were only marginal.

In an interview with CNBC last month, Iger revealed his future plans for the entertainment giant, which include cutting the company's spending on Marvel and Star Wars productions. Iger also suggested that the company may sell some of its cable networks that he said are not "core" to Disney, such as ABC, FX and National Geographic.

"I think there are three companies that will drive the most value creation growth over the next five years," Iger said on Wednesday's earnings call. "These are our film studios, our parks business and streaming, all of which are inextricably linked to our brands and franchises."

Although Iger was originally set to stay at Disney for two years, he recently extended his contract with the company until at least 2026. Since returning to the CEO role last year, Iger has already begun rocking Disney's boat by implementing a series of layoffs and content removals. Between Hulu and Disney Plus.

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