Disney+ Readies Its Password-Crackdown Era

In a quest for streaming profits, Bob Iger will try in earnest to convert freeloaders into customers

Disney is the latest streaming giant to jump into a password-sharing crackdown, with its efforts to make money from the move set to begin in earnest this summer.

The media giant has updated its subscriber agreement for Disney+, as well as Hulu, to ban account sharing for new subscribers starting Jan. 25, 2024, and for existing subscribers starting March 14. On its Feb. 7 earnings call, Disney CFO Hugh Johnston said that starting in a few months, Disney+ account holders will be “presented with new capabilities” that allow account sharers to start their own subs. Later this year, account holders can allow individuals outside their household to access their account for an additional fee. This is one of several measures Disney plans to help it reach streaming profitability by its fiscal fourth quarter, which ends in September. In its first-quarter earnings report, core Disney+ subscriber numbers fell by

1.3 million, which the company attributed to price increases in the quarter. However, the Bob Iger-led firm said it expects to add 5.5 million to 6 million next quarter. And average revenue per user increased from the previous quarter, thanks to Disney’s burgeoning advertising tier, which expanded outside of the U.S. In addition to paid sharing, which follows in the footsteps of Netflix, Johnston said Disney’s plan to bolster its streaming finances also includes its bundles, such as making Hulu content available on Disney+ for certain subscribers, which should help lower churn amid the password-sharing crackdown. Johnston also noted that Disney sees a “growth opportunity” in its international markets.