Move over, Netflix: Disney could be the next company to crack down on password sharing. During an earnings call Wednesday, Disney CEO Bob Iger said the company is “actively exploring ways to approach account sharing.”
Iger added that Disney will “begin updating our subscription agreements with additional terms and our sharing policies” later this year and will also “implement tactics to drive monetization” in 2024. Netflix began charging users an additional fee. for sharing your accounts with someone. away from home earlier this year.
When asked how many people share passwords on Disney services, Iger declined to provide a number, but said it’s “significant.” He also added that the company has the “technical capacity” to monitor logins and that the company plans to “solve this issue” in 2024.
“While you will likely see some impact on calendar 24, it is possible that … the work may not be completed within the calendar year,” Iger said. “But we’ve certainly made this a real priority, and we really believe there’s an opportunity here to help us grow our business.”
Besides, Disney announced a new $19.99 per month ad-free package with Disney Plus and Hulu launching in the US on September 6. With the introduction of the bundle, the price of individual subscriptions to Disney Plus and Hulu will increase on October 12. While Disney Plus’ ad-free plan will cost $13.99/mo (was $10.99), Hulu’s ad-free version will cost $17.99 a month (was $14.99). Ad-supported plans for both services will remain the same.
While Disney Plus subscribers in the US and Canada fell slightly from 46.3 million to 46 million, India-based Disney’s Hotstar service took a hit. The service has lost more than 12 million subscribers since April, leaving it with 40.4 million. This drop is probably related to Disney loses broadcast rights to the Indian Premier League (IPL) last year. Disney’s other streaming services, ESPN Plus and Hulu, only saw a slight change in subscribers.
In an interview with CNBC last month, Iger revealed his plans for the entertainment giant’s future, which include cutting the company’s spending on Marvel and Star Wars Iger Productions also hinted that the company might sell off some of its cable networks that he says are not “core” to Disney, such as ABC, FX and National Geographic.
“Going forward, I think three businesses will drive the most growth in value creation over the next five years,” Iger said during an earnings call on Wednesday. “It’s our movie studios, our parks and broadcast business, all of which are inextricably linked to our brands and franchises.”