After months of warning its members, Disney has finally started to enforce restrictions on password-sharing on Disney+. Starting this week, Disney is no longer allowing account sharing without additional charges. Users will be required to pay extra for additional access or create their own accounts. This move is reminiscent of similar actions taken by Netflix and other streaming services to increase revenue.
Here's a brief overview of how paid sharing works on Disney+. Subscribers can still share their accounts with family and friends, but this privilege is no longer free. Disney has always maintained that a Disney+ account is intended for use within the same household. Despite this, account sharing has been common since the service launched. However, those days are now over.
Account holders who wish to add someone outside their household to their Disney+ membership can do so by paying extra to create an 'Extra Member'. In the US, Extra Members cost $7/month for Disney+ Basic and $10/month for Disney+ Premium. Disney has clarified that only one Extra Member is allowed per account and that this feature is not available for Disney Bundle subscribers or those who access Disney+ through a partner offer.
If the account owner is unwilling to pay for an Extra Member, the person seeking access will need to create their own account. The original account holder can, however, transfer a profile, retaining the watch history and settings. Profiles for Junior Mode accounts, minors, and the account holder themselves cannot be transferred. Disney has also informed users that while traveling, they may encounter a prompt stating, 'This TV doesn't seem to be part of the Household for this account.' Users can mark themselves as 'Away From Home' to bypass this issue. If relocating permanently, users can reset their household location.
Netflix's crackdown on password-sharing led to a significant increase in subscribers, and Disney is likely hoping for a similar outcome. In related news, Disney+ is currently available for just $2/month as part of a promotional offer ending on September 27. This is shortly before Disney+'s planned price increase on October 17, when the ad-supported plan will rise to $10/month and the ad-free plan will increase by $2 to $16/month. Monthly rates for Hulu and ESPN+ will also increase at that time.
After years of financial losses, Disney+ is now profitable for Disney, with projections for subscriber growth and revenue increase in the coming months. The planned price hikes are part of this strategy. CEO Bob Iger defended the price increases, stating that only a small, statistically insignificant percentage of users leave each time prices are raised.
