Netflix launched a global campaign in response to password sharing last year. It began preventing users from disclosing their passwords to friends or others who weren’t living with them. The action came after the business made an attempt to raise sales and encourage more users to sign up.
Disney Plus is now preparing to launch its own password-sharing crackdown in the upcoming months, imitating Netflix.
Disney will not allow users to share password
Disney Chief Financial Officer Hugh Johnston stated during a company earnings call on Wednesday that Disney Plus accounts “suspected of improper sharing” or those who sign up using someone else’s account will have the option to sign up for their own subscription. According to him, the company will begin preventing users from sharing passwords in the summer of 2024, beginning in March.
Disney intends to implement a new feature that will enable account holders to add individuals who reside in different households for an additional fee, even though the company will also prohibit users from practising on other people’s accounts. In an identical way , Netflix charges an additional fee to users who wish to sign up for accounts from outside their home. Currently, adding a non-household member to Netflix costs $7.99 per month, though this feature isn’t available in all regions.
New feature will increase revenue
Disney hasn’t revealed the fee’s exact amount, though. “Our content is outstanding and we want as many people as possible to enjoy it,” Johnston stated. “We are excited to launch this new feature to increase our subscriber base.”
Notably, this year Disney Plus modified its terms of service to forbid users from sharing their subscriptions with others who are not living with them. The revised conditions will take effect for new subscribers on January 25 and apply to current subscribers on March 14.
“Paid sharing is an opportunity for us,” Johnston further added. “It’s one that our competitor is obviously taking advantage of, and one that sits in front of us … We’ve got some very specific actions that we’re taking in the next couple of months.”
Password sharing is becoming more and more of a financial burden for streaming services like Netflix and Disney, which is one of the main reasons they have begun to restrict it. Password sharing is one of the main reasons these businesses, along with other tech behemoths, are having financial difficulties. Sharing passwords makes fewer subscribers pay, which reduces their revenue. They hope to generate a significant increase in revenue by turning password sharers into customers. Nine million new Netflix subscribers were added after the crackdown was implemented.
In order to make money from advertisements, streaming services are also launching new ad-focused plans in addition to password sharing. A new ad plan from Netflix has already been released, offering customers a cheaper Netflix subscription in exchange for advertisements. Additionally, it is said that the company has begun to discontinue its Basic plan, giving customers the option to upgrade to the base plan for a higher cost. In a similar vein, Amazon Prime recently unveiled an advertising strategy to increase its earnings.
