Disney has confirmed when it will launch its war against shared Disney+ accounts. As announced a few months ago, the company will follow in Netflix’s footsteps to prevent you from sharing your password with friends or family. The video streaming service will offer the option to create a new account or add a user for a fee.
Disney CEO Bob Iger said this in an interview with the publication. CNBC What strategy against shared Disney+ accounts will begin in June 2024.. Iger said it would only apply to some countries in the first phase, although the idea is to roll it out to all markets starting in September.
The crackdown on Disney+ shared accounts began in November 2023, when the company implemented the measure in Canada. Disney sent out an email to all of its subscribers letting them know about this. They could not share the account or password with third parties. that they did not live in their home. The entertainment giant has offered the option to pay per additional user, much like Netflix does.
During the interview, Bob Iger made it clear that his goal is turn Disney+ into a profitable business. The manager applauded the growth of the platform, which in just four years has risen to second place in the streaming business, behind only Netflix. However, this increase did not translate into increased revenue.
“We know we ended up losing a lot of money, more than we originally thought,” Iger said. “Part of it is that we were chasing small growth and weren’t focused. The goal was to cut losses and become profitable in the last quarter of the financial year.” Manager not only plans to combat shared accounts, but also improve planning.
Disney+ will close shared accounts this summer
Part of Bob Iger’s strategy to make Disney+ a profitable business isn’t just about shared accounts. The head of the company said that they are striving to increase engagement users and improve programming. Company will invest in algorithms to make more effective recommendations.
Another important point is to attract users outside the US. Iger added that They will select countries with potential for growth and improvement of local programs.. At the same time, they will reduce marketing costs and other additional expenses.
The fight against account sharing has been on Iger’s mind since his return to Disney. Although this measure is controversial and led to loss of Netflix subscriberssome markets performed better.
“We are seeing cancellation reactions in every market as we announce this news, however this is temporary,” Netflix said during an April 2023 call with shareholders. “In Canada, our subscriber base is already larger than before we launched this measure. Revenues have accelerated and we are now growing faster than in the US.”
Chapter Disney said it is confident in its strategy against shared accounts and he’s confident Disney+’s revenue will grow. Iger praised Netflix, which he considers the gold standard for streaming, and mentioned other competitors such as Amazon and Apple.
“If we can get what [Netflix] achieved, I will feel good. We know what it takes to succeed in this business, and not everyone can achieve it. We have it,” he noted.
Source: Hiper Textual
