Disney+ will crack down password sharing starting in June

Disney Plus already has regulations in place to discourage subscribers from revealing their passwords, but we now know when it will start charging customers to divulge them. In a CNBC interview, Disney CEO Bob Iger stated that the business aims to undertake its first step into password sharing in June.

Iger states that the distribution will begin in "just a few countries in a few markets" before expanding to all users in September. Disney implemented anti-password sharing regulations for new and existing subscribers on January 25th and March 14th, respectively.In 2023, Netflix became the first streaming service to charge an additional $7.99 per month to prevent password sharing.

During an earnings call in February, Disney's CFO, Hugh Johnston, revealed that members "suspected of improper sharing" will be prompted to join up for their own subscription this summer. Subscribers will also be able to add individuals from outside their family for a "additional fee," though Disney has yet to reveal the exact amount.

Disney unveiled the combined Disney Plus and Hulu app late last month to increase subscriptions to its lucrative streaming bundle. The newly integrated app integrates content from both sites and uses your watch history to provide more personalized recommendations.

“We feel great about the engagement of those Disney subs who are not getting Hulu who are now watching more programs that were on Hulu, including Shogun,” Iger tells CNBC. “We have to increase engagement. We need the technological tools to lower churn, create more stickiness. It’s things like recommendation engines, getting to know our customers better.”

Disney is also attempting to "unify identities so that who you are on the Hulu app is connected to who you are on Disney Plus, ESPN, and your cable box”, a critical tool for a password-sharing crackdown. Iger plans to launch a streaming-only version of ESPN and aims for profitability by the end of the fiscal year. Paid sharing will most likely help achieve this goal.