Hammer from The House of Mouse

During a recent earnings call, Disney’s chief financial officer, Hugh Johnston, announced the forthcoming crackdown on password sharing, indicating that accounts suspected of improper sharing will be targeted. These users will be presented with options to transition their shared access into individual subscriptions. Later this year, Disney Plus will introduce paid sharing options, allowing account holders to add individuals outside their household for an additional fee. However, specific pricing details for this feature have not yet been disclosed.

However, not all is doom and gloom above The House of Mouse, as the earnings call revealed some exciting news for Disney fans, including that Disney has bought a $1.5 billion worth of stake in Epic Games to create an “expansive universe” in collaboration with Fortnite. Some exciting prjoect annoucement like “Moana” is getting a surprise sequel this November, “Percy Jackson and the Olympians” is officially getting a second season at Disney+ (despite fan’s mixed reception about the series), and that “Taylor Swift: The Eras Tour” will stream exclusively on Disney+ in March.

The public’s reception on X (formerly Twitter) regarding news of the changes being announced has not been great for Disney+.

Johnston emphasized Disney’s commitment to expanding its subscriber base and enhancing the overall customer experience. He noted that while the initiative aims to address improper sharing practices, it also presents an opportunity for revenue growth and improved monetization strategies.

“We want to reach as large an audience as possible with our outstanding content. We’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base.”

Hugh Johnston, Disney’s CFO.

The Mouse Following Streaming Industry’s Giants

The move follows a broader trend in the streaming industry, with other major players like Netflix already implementing similar measures. Last year, Netflix introduced paid sharing options, charging subscribers an additional fee to add users located outside their primary residence. The strategy proved successful for Netflix, driving subscriber numbers up and contributing to improved financial performance.

In an email to customers, Disney encouraged customers to “review the updated Subscriber Agreement in full and save a copy for your files,”

Short-term Profits, Long-term Consequences ?

However, Disney’s latest earnings report revealed a decline in Disney Plus subscribers in the US and Canada following recent price hikes. Despite this setback, the company remains optimistic about its streaming initiatives and is focused on delivering compelling content and innovative features to attract and retain subscribers.

The move to crack down on password sharing underscores Disney’s commitment to protecting its content and ensuring a fair and sustainable streaming ecosystem. As the streaming landscape continues to evolve, companies like Disney are adapting their strategies to address emerging challenges while capitalizing on new opportunities for growth and expansion.

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