Feb. 14, 2024
Disney+ is gearing up to tackle improper password sharing, aiming to convert freeloaders into paid subscribers starting this summer. By: Wee Yan Ling
Disney+
will be following the footsteps of Netflix this summer as they crack down
improper password sharing to convert users into paid customers. Recent
notifications to U.S. customers reveal changes in subscriber terms for Disney+
and Hulu explicitly forbidding the sharing of log-in details with individuals
not residing in the primary household. These implementations will take effect
from March 14 for existing subscribers.
Disney
CFO Hugh Jonston has outlined the upcoming measures. From summer onwards,
Disney+ accounts suspected of improper sharing will be equipped with new
capabilities as they encourage borrowers to start their subscription. Later in
2024, account holders seeking to grant access to individuals outside their
household will have the option to do so at an additional fee.
Disney+
faced a net loss of 1.3 million subscribers in its core markets for the last
quarter of 2023, attributed to price hikes. Looking ahead, Disney projects
adding between 5.5 million and 6 million subscribers to "Disney+
Core" in the current quarter ending in March.
Despite
being in the early stages, Johnston had displayed his optimism about the
paid-sharing initiatives as he anticipates notable benefits in the latter half
of 2024. The organisation’s ambition is to maximise audience reach and to
elevate customer experience, growing the subscriber base. Disney has
encountered a net loss of 1.3 million subscribers in its core markets for the
last quarter of 2023 which was attributed to price hikes. Disney projects
adding between 5.5 million to 6 million subscribers to “Disney+ Core” in the
current quarter ending in March.
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