Disney is curbing password sharing for its Disney+ streaming service as part of a larger effort to boost signups and revenue.
CEO Bob Iger, in a CNBC interview on Thursday, said its popular Disney+ streaming service will start cracking down on password sharing in June in some countries and more broadly in September. Although Disney+ and Disneyโs other streaming servicesโ terms of service explicitly prevent customers from impersonating someone else by using their username or password, it hasnโt been broadly enforcing its policy.
Hulu, one of Disneyโs other streaming services, began limiting how often customers can share account login information outside their households starting on March 14.
The crackdown comes as its rival Netflix has attributed a jump in signups from its recent crackdownย on password sharing. Shortly after the crackdown went into effect last May, Netflix added 100,000 new accounts on the following two days, according to data fromย Antenna. Netflix had also achieved a more than 100% increase in sign-ups from the prior 60-day average.
A similar boost at Disney could help move the companyโs streaming platform toward profitability. Disney+ continues to lose money, although the company said it expects to turn a profit soon.
โNetflix is the gold standard in streaming,โ Iger said in the interview. โTheyโve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what theyโve accomplished. If we can only accomplish what theyโve accomplished, that would be great.โ
Iger also said Disney+ has also consolidated its streaming business but didnโt elaborate on which departments or roles.
The password crackdown had been expected for months. On an earnings call with investors last year, Iger said a looming crackdown would help Disney grow.
โWe certainly have established this as a real priority,โ Iger said on Disneyโs fiscal third-quarter earnings call. โWe actually think that thereโs an opportunity here to help us grow our business.โ
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