Disney CEO Bob Iger announced that its streaming service Disney Plus will launch its password-sharing crackdown in June.
Last year, Disney Plus unveiled its plans to prevent illegal password sharing that has been prevalent on streaming platforms.
Disney Plus to Start Password-Sharing Crackdown
In an interview with CNBC, Iger revealed that the rollout will start among a few countries in a few markets first. Gradually, the system will be expanded to all subscribers by September.
Disney first announced its anti-password sharing rules earlier this year which were rolled out to current subscribers on March 14. The company argued that it must prevent all kinds of improper sharing which could affect the platform's total revenue.
During an earning call in February, Disney's chief financial officer Hugh Johnston said that subscribers who are suspected of improper sharing will be shown a prompt asking them to sign up for their own subscription. Members outside of the household can still be added for an "additional fee."
As of writing, Disney has yet to lay down all the specific details about the implications of its password-sharing crackdown.
Disney Plus Joins Netflix's Fights Against Password Sharing
Netflix, the top streaming platform, was the first one to implement a password-sharing crackdown. Its crackdown managed to kick out users outside of a household unless an extra fee was added.
As for Disney, the company opened a combined streaming service that offers both Disney Plus and Hulu collections. The move was done to encourage subscribers to avail a more lucrative streaming bundle.
"We have to increase engagement. We need the technological tools to lower churn, create more stickiness. It's things like recommendation engines, getting to know our customers better," Iger explained.
