With the release of Disney’s Q1 2024 earnings report, Disney CEO Bob Iger said the impact of their limits on password-sharing won’t be felt until 2025.
Disney+ Puts Plan in Motion to Crack Down on Password Sharing
Iger announced during the Q3 2023 earnings call that Disney+ would roll out new policies to combat password-sharing in 2024. He said prior to the call, in an interview with CNBC, that the impact of this crackdown likely won’t be felt until 2025.
With this plan, starting this summer, Disney+ accounts suspected of sharing outside of their household will be offered “new capabilities to allow their borrowers to start their own subscriptions.” Later in 2024, Disney+ account holders who want to allow access for individuals outside of their household will be able to add them to their accounts for an additional fee.
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, and we’re looking forward to rolling out this new functionality to improve the overall customer experienc eand grow our subscriber base.Hugh Johnston, Chief Financial Officer, The Walt Disney Company
Per Variety, Disney and Hulu have been notifying U.S. customers of changes to their subscriber terms of service, which now forbid them from sharing their log-in information with anyone who doesn’t live in their home. These terms go into effect starting March 14.
Unless otherwise permitted by your Service Tier, you may not share your subscription outisde of your household.
We may, in our sole discretion, analyze the use of your account to determine compliance with this Agreement. If we determine, in our sole discretion, that you have violated this Agreement, we may limit or terminate access to the service and/or take any other steps as permitted by this Agreement.Updated subscriber terms for Disney+ and Hulu
Disney+ lost 1.3 million subscribers this past quarter but narrowed losses. Disney expects to add between 5.5 and 6 million subscribers to the core service by the end of the current quarter.