Netflix cracked down on password sharing earlier this year and although they saw an uptick in revenue at first thanks to the crackdown, the latest signs seem to point to the policy having an adverse effect on revenue.
Even with Netflix’s decline in subscriber numbers other companies are looking to follow suit on their password sharing crackdown. Disney+ is now signalling its intention to follow suit and stop subscribers sharing their passwords with others.
During their latest earnings call, Disney CEO Bob Iger has revealed that Disney is “actively exploring ways to address account sharing” and that it is a “real priority” for Disney. Similar to the way Netflix are implementing their crackdown, Disney plans on using a technical solution as well as an update of Disney+’s terms and conditions.
Obviously Disney’s profit of nearly 1.3 billion USD from a revenue of 22.33 billion USD just for the third quarter of 2023 is not enough for them and think that this is an “opportunity [here] to help us grow our business” according to Iger.
Although not expected to begin until at least 2024, the exact date of Disney’s password sharing crackdown is unclear but with Netflix seeing a decrease in subscribers now a few months into their policy change it is possible that they may backtrack on their current path.
Scott is our resident open technology expert. If you can mod it, or want to use it your way, Scott has probably done it. From Laptops to phones, headphones and game consoles, he’s played with it and wants to see the next generation.
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