It was nice while it lasted.
We’ve known since February that Disney+ andHuluhave been working on a plan to crack down onpassword sharingfor multiple households, and now it looks like they’re ready to roll out a big update in September that will end this practice for good, according to CEO Bob Iger. Though it hasn’t gone live in the US yet, the crackdown has been rolling out in other territories, and Iger said that the company has “had no backlash at all," to the changes where password sharing has been removed.
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A new sharing tier will go live soon
Similarly to Netfix, Disney has said that their streaming services are intended for use by one household only, and they will be launching a new paid sharing tier for those who want to share their account outside of their house, similar to the $7.99 per month sharing account fee that Netflix charges. Unfortunately, pricing has not been revealed for this new add-on, but it may be a tough pill for users to swallow, assubscription fees for Disney+ and Hulu just went up yesterday.
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Streaming is finally paying off for Dsiney
But can it keep up the momentum?
Like other streamers, Disney has struggled to turn a profit with its streaming services. However, in its Q3 earnings results, released today, the company reported making $47 million off Disney+, Hulu, and ESPN+, meaning that for the first time ever, Disney’s streaming business was actually profitable.
Will these streamers stay in the positive as we head into the fourth quarter? The crackdown on password sharing should see some new account creation, but the price hikes could offset this with inevitable churn, so it’s hard to say for sure.
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