In a recent email sent to subscribers, Disney announced its decision to crack down on password-sharing for Disney+ in Canada starting from November 1, 2023. The move comes as no surprise, as Disney CEO Bob Iger had previously mentioned the company’s intention to address this issue. This article will delve into the details of Disney’s new policy and explore its potential impact on account sharing and monetization strategies.
Disney’s updated Subscriber Agreement highlights the introduction of “restrictions on account sharing” for Disney+ users. While sharing passwords has always been against the written permissions agreement, the company has not actively enforced this rule. However, starting from November 1, users in Canada will no longer be allowed to share passwords as it becomes an official rule. Notably, the fine print states that password-sharing may be permitted for certain service tiers, similar to Netflix’s approach.
Netflix, a pioneer in the streaming industry, faced a similar issue with password-sharing. After cracking down on this practice and implementing fees for sharing accounts, the company experienced a significant growth in subscribers. Disney, undoubtedly observing Netflix’s success, aims to replicate these results with its own methods. CEO Bob Iger sees this crackdown as a “real priority” for the company and expects it to drive monetization efforts.
Bob Iger mentioned that Disney will roll out tactics to enhance monetization in 2024. While he did not provide specific figures for account sharing on Disney+, he acknowledged its significance. Disney’s decision to crack down on password-sharing is not just about preventing revenue loss but also an opportunity to grow its business. By limiting account sharing, Disney hopes to encourage more individual subscriptions, thus increasing its subscriber base and revenues.
In addition to cracking down on password-sharing, Disney is also implementing a price hike for Disney+ and its ad-free plan. Starting from October 12, the ad-free plan will increase from $11/month to $14/month. Similarly, the ad-free version of Hulu, another streaming service owned by Disney, will see an increase from $15/month to $18/month. These price adjustments indicate Disney’s strategy to generate more revenue from its streaming platforms and investment in content creation.
Disney’s decision to crack down on password-sharing for Disney+ in Canada reflects the company’s commitment to protect its interests and drive monetization efforts. By introducing restrictions on account sharing, Disney aims to emulate the success of Netflix in increasing individual subscriptions and revenues. Additionally, price hikes for Disney+ and Hulu further highlight Disney’s strategy to generate more income from its streaming platforms. As Disney’s crackdown on password-sharing takes effect, it remains to be seen how subscribers will react and whether this move will yield the desired results for the company.
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