Netflix has set the precedent for streaming services by proving password-sharing crackdowns can be successful. Now, Disney is following its lead.
Last Wednesday, Disney CEO Bob Iger said in an earnings call that the entertainment giant is looking into users sharing accounts of their streaming services, and how it can address this in the coming months.
"We already have the technical capability to monitor much of this... I'm not going to give a specific number, except to say that it is significant," Iger told investors at the time.
Furthermore, he called Disney's efforts to curb this a "real priority," and the company is slated to proceed with its potential crackdown by next year.
Disney is the latest among streaming giants to pursue such a goal amid the increasingly competitive streaming industry.
Netflix was one of the first companies to bite the bullet.
Last February, it began testing its password-sharing crackdown in Canada, before eventually rolling it out in the U.S. and U.K., emphasizing that a Netflix account is for use by one household.
Despite the backlash, the streaming giant experienced “the four single largest days of U.S. user acquisition” during the first six days after the policy took effect in the U.S.
Netflix's move has also helped gain 5.9 million subscribers in the second quarter of 2023, making it a huge success despite backlash from some users.
Additionally, it also scrapped its basic ad-free options, leaving users to choose between the $6.99 a month ad-supported plan, the $15.49 a month standard plan, and the $19.99 a month premium plan.
Other streaming services have also taken to their own hands to deal with rising content costs. Last March, YouTube TV increased its monthly subscription prices from $64.99 to $72.99 per month.
Meanwhile, Spotify also announced plans to hike the price of its ad-free premium subscription services across 100 countries last July.
"The market landscape has continued to evolve since we launched. So that we can keep innovating, we are changing our Premium prices across several markets around the world," it explained.
Edited by Nikola Djuric