Disney+ is set to follow in the footsteps of Netflix by restricting password sharing among its users in the US, starting from March 14th. This means that users at different addresses will need to take out their own subscription. The move is aimed at reducing losses and increasing revenue for the company, which has been suffering heavy losses for some time now.
Disney’s Chief Financial Officer, Hugh Johnston, announced the intervention during a meeting with shareholders. Users suspected of “inappropriate sharing” will see an option to subscribe themselves, while those who already have a subscription can include an additional user for a yet-to-be-specified amount. It remains unclear whether the intervention also applies to users in Belgium, where password sharing has been made impossible since last year by Netflix.
Netflix reportedly checks for password sharing by tracking IP addresses, device IDs and account activity. With this information, they can also determine which devices are located outside the household. This strategy has proven successful for Netflix and it is hoped that Disney+ can follow suit and achieve similar results.
The intervention comes at a time when Disney+ has lost over 1 million users in the US and Canada last year – worldwide, the streaming service is said to have around 150 million users. However, with this move Disney expects an increase of 5.5 to 6 million users in the short term alone.