Disney Plus is tightening its password-sharing rules to boost profitability and announced a price increase for its ad-free subscription.
The video-streaming giant has announced its plans to implement its much-debated password-sharing crackdown in September 2024. In June, it introduced a testing phase at some locations. However, Disney CEO Bob Iger announced that the full enforcement of this policy would start next month.
During Disney’s recent conference call to discuss the financial results.
Iger said:
“We have been improving our technology to make our business more profitable and successful.
We tested the password-sharing initiative in June and plan to roll it out in September. There has been no backlash regarding our notifications and activities so far.”
What’s behind the crackdown
It has done so after Disney’s initial plans, announced in August 2023, faced delays. As mentioned, Disney Plus started the crackdown in some markets this year, but the US was not part of that phase.
It is important to know that Netflix has already implemented similar measures in May 2023. It raised $7.99 to add a free subscription for the additional house. This rise witnessed a drastic increase in the number of subscribers.
Like Netflix, Disney Plus has eliminated the password-sharing policy and raised its subscription fee. Beginning October 17, 2024, new subscribers to the add-free versions of Disney Plus will have to pay 15.99 per month.
This is almost double the initial price when it was first marketed in 2019. The price increase comes as Disney’s streaming arms get their first profit this quarter.
