It looks like Disney+ is about to get more expensive
Disney+ is set to put in place measures against password-sharing in 2024. This will be part of the company’s effort to enhance monetization, as revealed by Disney CEO Bob Iger during the third-quarter earnings call on August 9.
Iger emphasized, “We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family.”
He disclosed that Disney will update the subscriber agreements with new terms and sharing policies later this year. The company will also introduce strategies to boost monetization sometime in 2024.
The decision follows Netflix’s recent crackdown on password-sharing. It led to a surge in the streaming site’s paid subscribers this year.
Iger mentioned, “We already have the technical capability to monitor much of this. I’m not gonna give you a specific number except to say it’s significant.”
He acknowledged the potential of the password-sharing crackdown extending beyond 2024. Still, he reiterated the company’s dedication to prioritizing this initiative. “We certainly have established this as a real priority, and we actually think that there’s an opportunity here to help us grow our business.”
Iger highlighted Disney+ as one of the pivotal elements propelling Disney’s growth trajectory.
He stated, “Moving forward, I believe three businesses will drive the greatest growth and value creation over the next five years. They are our film studios, our parks business, and streaming, all of which are inextricably linked to our brands and franchises.”
A dip of 300,000 subscribers during the quarter brought the global total to 46 million. Yet, Disney+ demonstrated an increase in average monthly revenue per paid subscriber in these regions.
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On November 1, Disney+ will introduce an ad-supported offering in select European markets, as well as in Canada. There will also be a new ad-free bundled subscription plan featuring Disney+ Premium and Hulu (No Ads) for $19.99/month in the U.S. from September 6. These specifications will be coming to more countries in the future.
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