Disney to Enforce Password Sharing Policy from June, Announces CEO Iger
Walt Disney Company's CEO Bob Iger has announced plans to enforce measures against password sharing on its streaming service starting in June. The crackdown is a strategic step intended to bolster subscription growth and enhance profitability. The initiative is also aligned with Disney's broader objectives of achieving double-digit streaming margins.
The enforcement of new password-sharing rules follows a trend in the streaming industry to protect revenues and ensure that subscribers adhere to the terms of service. This approach has been adopted after Disney investors recently overcame a challenge from activist investors, including Nelson Peltz, who contended that the company had not lived up to its potential in the streaming era.
Furthermore, Disney has updated its terms and conditions to prohibit the sharing of Disney+ and Hulu accounts with individuals outside of the subscriber's household. This policy change is expected to impact various subscriber demographics, including college students and individuals residing apart from their families. The full implementation of these measures is set to roll out more broadly in September, following an initial introduction in a few countries.
