Disney+ to Restrict Password Sharing, Following Netflix’s Lead

• Disney+ will enforce password sharing restrictions starting in June and more broadly in September to boost signups and revenues.
• Following Netflix’s lead, Disney aims to curb password sharing to improve profitability, with CEO Bob Iger emphasizing its importance for business expansion.

Disney+ streaming service password sharing will no longer be allowed as part of its effort to boost signups and revenues.

On Thursday, Disney CEO Bob Iger disclosed in a CNBC interview that its popular streaming service Disney+ will begin cracking down on password sharing beginning June in some countries and more broadly starting September. Although its terms of service prohibit impersonating another user with username or password information, Disney hasn’t enforced its policies strictly until now.

Starting on March 14th, Hulu, another streaming service offered by Disney, began restricting how often customers could share account login info outside their households.

According to data provided by Antenna, Netflix recently experienced an upsurge in signups due to its crackdown on password sharing. Following implementation in May, 100,000 accounts had signed up over just two days post-crackdown, representing over 100% growth versus their prior 60-day average signups.

Disney+ continues to lose money; however, Disney expects the streaming platform will soon turn a profit.

“Netflix has set an excellent precedent in streaming,” Iger stated in the interview. “They have done an outstanding job in many different directions – something which I hold them in high regard for. If we could achieve what they have accomplished, that would be fantastic!”

Iger also stated that Disney+ had successfully integrated into its streaming business but did not disclose which departments or roles this involved.

Iger and investors had long anticipated password restrictions on an earnings call last year, during which time he anticipated how this action could help Disney expand and prosper.

“This has certainly become a top priority of mine,” Iger stated during Disney’s fiscal third-quarter earnings call. “There may even be opportunities here that help expand our business.”