Disney+ Password Sharing Crackdown Starts in June

Some subscribers to Disney’s streaming services will be on the receiving end of a password-sharing crackdown.

The message is simple: If you share passwords with anyone outside your main household, you could be disconnected.

In an exclusive interview, Disney CEO Bob Iger told CNBC, “Password sharing is something else. In June we’ll be launching our first real foray into password sharing.” He added, “Just a few countries in a few markets, but then it will grow significantly with a full rollout in September.”

When asked if it was essentially clamping down on password sharing, he replied, “Yes. And all of that, obviously, all the things that I mentioned are components of what will turn this business into a business that we feel really good about.”

Disney CEO Bob Iger revealed that the company is planning to begin its crackdown on Disney+ password sharing in select regions this June, with the intent of full enforcement by September 2024. https://t.co/e2nUnZxjKt pic.twitter.com/bb29Yykn1c

— IGN (@IGN) April 5, 2024

In January, the company updated and notified Disney+ subscribers about changes to the subscriber agreement before it went into effect. Disney joins a growing list of subscription services that have gotten strict about password sharing on their platforms.

Iger believes the move will support the company’s efforts to increase monetization in the new year. Disney began its crackdown in Canada first and unveiled new rules in November.

Last year, Netflix put a stop to password sharing and hiked the price of some of its subscription tiers. Following the news, Warner Bros. Discovery announced it also had plans to begin cracking down on password sharing for its subscription service Max.

When asked by CNBC if Disney+ would ever have the margins Netflix has, Iger responded any answer would be “premature.” He said that it would “certainly be great if we could.”

Iger believes the company will grow and produce “margins that our shareholders will feel good about.” He added, “We know how to run businesses well, high margin businesses, parks and resorts a great example of that as a for instance. I’m confident that we’re on the right path but we still have a lot to [do].”

Iger first announced plans to address account sharing in August, saying it would be a priority for its global subscriber base in 2024.