Disney CEO Bob Iger has announced that the company will begin enforcing restrictions on password sharing for its streaming services starting in June 2024. This move is part of an effort to boost subscriber growth and profitability. The initial ban on sharing passwords will roll out to a few countries in July and worldwide in September.
The company has been aware of the significant number of people sharing passwords since 2023, but it hasn’t taken a hard line on this issue until now. As Disney expects its streaming business to be profitable in the fourth quarter after years of losses, cracking down on password sharing is one of the changes being implemented. Other changes include improving recommendation engines to lower churn, being smarter about the shows it greenlights, particularly outside the U.S., and reducing the cost of customer acquisition.
This announcement comes two months after Disney Plus informed U.S. subscribers about adding limitations on sharing accounts outside of their households. Other competitors, like HBO Max, also plan to prevent users from sharing their passwords this year.
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