Disney has announced that it will tighten password sharing practices for its streaming service Disney+. This step comes as part of efforts to increase the number of subscribers and thus revenues. Bob Iger, the company's CEO, revealed that the restrictions will be implemented first in some countries in June and then in other regions in September.
Disney+ and other Disney-operated streaming platforms have previously prohibited customers from granting access to others using a username or password, but until now they have not strictly enforced that rule.
Hulu, also owned by Disney, has restricted its customers from sharing passwords outside of home since March 14. This change follows similar actions taken by Netflix, which has led to a significant increase in new subscriptions. In the case of Netflix, 100,000 new accounts were registered shortly after the measures were implemented, more than double the previous 60-day average.
With these moves, Disney hopes to achieve similar success and help make its streaming platform profitable. Right now, Disney+ is in losses, but the company says it will turn positive soon.
Limiting the sharing of passwords between subscribers has been on the agenda for a long time. At an investor conference last year, Iger explained that this move would be key to the company's growth strategy.
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