Disney is taking a page from Netflix’s playbook and cracking down on password sharing, joining the ranks of streaming giants tightening the screws on unauthorized account access. While Netflix stirred a hornet’s nest with its crackdown last year, Disney appears to be implementing its new sharing policy in a more nuanced way, offering options to pay for access for those living outside the primary household.
A More Flexible Approach to Password Sharing
Disney is embracing a more flexible approach to password sharing by allowing subscribers to pay for access to family members or friends who live outside their home. Instead of a blanket ban, Disney+ subscribers can choose from different options to accommodate their needs.
Extra Member Profiles: An Additional Fee for Sharing
One option is to add an extra member profile to your Disney+ account. This allows someone outside of your home to access the service, but it comes with an additional fee. Domestically, an extra member profile will cost an additional $6.99 a month for Disney+ basic subscriptions and $9.99 a month for premium subscriptions.
One-Time Passcode for Temporary Access
For users who are away from their home or have moved, Disney offers a one-time passcode option. Users can log in with a code sent to their email address, allowing them to access the service temporarily. This is a handy option for those traveling or in situations where a temporary access solution is needed.
A Change in Tone: From Encouraging to Cracking Down
The move toward cracking down on password sharing is a stark contrast to Disney’s initial stance, which had previously encouraged sharing accounts. The company is now taking a stricter approach, acknowledging that its streaming service is “meant to be used within your household.” This shift in tone reflects the changing dynamics in the streaming landscape as companies seek to bolster their subscriber base.
Keeping Up with Netflix: A Shared Trend in the Industry
Disney’s move follows Netflix’s lead, which implemented stricter password sharing measures in an effort to attract more subscribers. While Netflix’s approach caused an outcry among some viewers, Disney is trying to take a more nuanced approach. Offering additional fee options gives users more flexibility and potentially avoids a backlash.
Pricing Increases to Boost Revenue
Disney’s clampdown on password sharing comes amidst a wave of price increases for its streaming services. On October 17, the cost of Disney+ basic (with ads) will rise to $9.99 a month, and Disney+ premium (without ads) will increase to $15.99 a month. The company is also raising prices for Hulu, ESPN+, and its multiservice bundles.
A Balancing Act Between Revenue and Subscriber Retention
These price increases reflect the growing competition and evolving landscape in the streaming industry. While Disney aims to bolster its revenue, the price increases might result in subscriber churn. The company is walking a tightrope, trying to maintain a delicate balance between maximizing profits and retaining its loyal subscriber base.
Takeaways
Disney’s decision to crack down on password sharing underscores the evolving nature of the streaming landscape. The move highlights the shift from a focus on acquiring new users to retaining existing subscribers and maximizing revenue. As companies compete fiercely for viewers, expect more streaming services to adopt stricter policies on password sharing and price increases.
It remains to be seen how effective these strategies will be in the long run, and whether they will encourage new users to sign up for individual accounts.