Disney's Netflix-Like Password Sharing Crackdown Begins This June As Bob Iger Tries To 'Increase Engagement'

The Walt Disney Co. DIS CEO Bob Iger revealed that the Mouse House will start its password-sharing crackdown in June.

What Happened: Iger disclosed the company’s plans to CNBC, stating that the new policy will be implemented in a few countries and markets initially, with a global rollout scheduled for September.

The anti-password sharing rules were first enforced for new Disney Plus subscribers on January 25 and later extended to existing members on March 14.

Subscribers suspected of improper sharing will be prompted to sign up for their own subscription this summer, as confirmed by Disney’s chief financial officer, Hugh Johnston, during an earnings call in February.

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While the company has not yet disclosed the additional fee for adding members outside a subscriber’s household, it is expected to be a significant step towards Disney’s goal of achieving profitability in its streaming business by the end of the fiscal year.

Disney’s recent move to combine the Disney Plus and Hulu apps is also seen as a strategy to increase subscriber engagement and reduce churn. The merged app not only integrates content from both services but also combines watch histories to enhance recommendations.

See Also: Bob Iger Once Thought Apple And Disney Merger Would Have Happened If His Friend Steve Jobs Lived: ‘I Think We Would Have Gotten There’

Why It Matters: Disney’s decision to charge for password sharing follows in the footsteps of Netflix Inc., which implemented a similar policy in 2023.

This move is part of Disney’s broader strategy to boost its subscriber base and achieve profitability in its streaming business.

Disney has been making significant strides in its streaming business, with its stock returning over 50% to investors in the past six months. The company’s recent initiatives, including the password-sharing crackdown, are likely to further bolster its position in the streaming market.

Price Action: At the time of writing, Disney's shares were trading 1% up at $118.26, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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