Streaming services are joining Netflix and Hulu in their quest to discover fresh avenues for expansion.
Disney+ is on the verge of implementing measures to restrict password sharing. The company has announced the introduction of new technology to encourage users to pay an additional fee.
Additionally during an earnings call, Disney stated that the changes would be implemented starting in the summer.
Hugh Johnston, Disney’s chief financial officer, said during that call that later this year, “Disney+ accounts suspected of improper sharing will be presented with new capabilities to allow their borrowers to start their own subscriptions. “
“Later this calendar year, account holders who want to allow access to individuals from outside their household will be able to add them to their accounts for an additional fee.”
Moreover, the feature resembles Netflix’s recent crackdown on password sharing. Like Netflix, it utilizes technology to detect shared accounts. It prompts users to create individual accounts or pay an upgrade fee to maintain sharing privileges.
Other streaming services, such as Hulu, are also exploring the implementation of stricter regulations on shared accounts. This shift comes as streaming platforms seek innovative strategies to expand in a challenging market landscape.
Apart from that, Disney did not specify the exact release date of the feature or its global expansion plans. Additionally, it mentioned that significant benefits from the changes are not expected to materialize until later in the year.
“While we are still in the early days and don’t expect notable benefits from these paid sharing initiatives until the back half of calendar 2024, we want to reach as large an audience as possible with our outstanding content,” Mr. Johnston said. “And we’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base.”
Disney+ is a streaming service owned and operated by The Walt Disney Company. Launched in November 2019, it offers a wide range of content from Disney, Pixar, Marvel, Star Wars, and National Geographic, including movies, TV shows, and documentaries.
Disney+ has quickly gained popularity, attracting subscribers with its extensive library of beloved classics and new original content produced exclusively for the platform. It has become a key player in the competitive streaming market, catering to audiences of all ages with its family-friendly and diverse entertainment offerings.