The Walt Disney Company is “actively exploring” ways to crack down on password sharing for its streaming services, CEO Bob Iger said on Wednesday.
Iger said that the company will start updating its subscriber agreements to include “additional terms” on sharing later this year and that it will implement “tactics to drive monetization” in 2024.
Password sharing is a widespread practice, and it is estimated that up to 30% of Disney+ subscribers share their passwords with others. This practice costs Disney revenue, as it means that the company is not getting paid for all of the people who are using its services.
Iger said that Disney is committed to finding a way to address password sharing that is fair to both its paying subscribers and those who are sharing passwords. He said that the company is considering a variety of options, including charging an extra fee for password sharing, limiting the number of devices that can access an account, or requiring users to verify their identities more frequently.
The decision by Disney to crack down on password sharing is a sign of the growing importance of streaming services to the media industry. As more and more people cut the cord and subscribe to streaming services, companies like Disney are looking for ways to generate more revenue. Password sharing is a major obstacle to this goal, and it is likely that other streaming services will follow Disney’s lead in cracking down on the practice.
In addition to the financial implications, password sharing also has the potential to impact the user experience for Disney+ subscribers. If too many people are sharing passwords, it can slow down the streaming service and make it difficult to find content. Disney will need to carefully balance its desire to crack down on password sharing with the need to ensure that its subscribers have a good experience.
It will be interesting to see how Disney’s crackdown on password sharing plays out. The company has a lot to lose if it alienates its subscribers, but it also has a lot to gain if it can find a way to reduce password sharing without impacting the user experience.
