The price hike across Disney-owned streaming properties is not surprising, as it follows in the footsteps of rival Netflix. Taking a step forward, Disney will be rolling out the ad-supported subscription packages in Europe and Canada starting November 1, 2023. But Disney’s trail of aping Netflix doesn’t end there. Just like Netflix, Disney is also planning to curb password sharing. During the company’s Q3 2023 earnings call, CEO Bob Iger announced that password crackdown tactics are in the pipeline and they will go into effect next year.
Iger stressed that the crackdown on password sharing is a “real priority” for the company. It seems that the unwelcome rule will be implemented swiftly, but Iger didn’t provide specific detail on how exactly it will be enforced. “We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger said. He further added that subscriber agreements and policy terms will be accordingly updated later this year.
But if Netflix is any indication, it just might work in Disney’s favor. Netflix reported positive revenue growth after it started its own password crackdown. Moreover, Iger also commented that the ad-tier subscriptions have a positive effect on the balance sheet, which also explains why they aren’t getting a price hike.