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In the latest earnings call, Disney CEO Bob Iger disclosed that the business is actively looking into ways to deal with account sharing. Iger disclosed plans to change subscriber agreements later this year with new terms and sharing guidelines, with strategies to drive monetization slated to debut in 2024.
Subscription Strategy: Disney Tackles Sharing and Losses
These behaviors clearly suggest that Disney+ password sharing policies and other services will soon be strictly enforced. Netflix already charges an extra price for account sharing outside of homes, and this action was successful. Following the implementation of these adjustments in the US, Netflix saw an increase in the number of new subscribers.
Before its crackdown, Netflix predicted that more than 100 million families shared accounts internationally. Although Iger withheld Disney’s statistics, he recognized the problem as “significant” and referred to the business’s technological capacity to track sign-ins.
Disney’s desire to increase subscription income is clear given the declining subscription numbers. The number of Disney+ members fell from 157.8 million to 146.1 million globally in the second quarter, with a decline of 300,000 subscribers in the US and Canada, for a total of 46 million.
Even though the loss of rights to the Indian Premier League is blamed for the majority of subscription losses, the reduction was anticipated. As Viacom18 paid $2.6 billion to gain the league’s rights, Disney’s Disney+ Hotstar’s viewership dropped from 52.9 million to 40.4 million.
Disney is proactively adjusting its business strategy to address the subscriber reduction and preserve its market share. The firm seeks to balance consumer convenience with the streaming industry’s sustainable expansion by solving account sharing and improving its subscription agreements.