The Mouse House will begin now to avoid the possibility of Share Passwords. For now, it informed Disney+ subscribers in Canada that starting November 1, “unless otherwise permitted by your service level, you will not be able to share your subscription outside of your home.” The notice also informs customers that if the company determines that a Disney+ subscriber has violated these terms, “we may limit or terminate access to the Service and/or take any other action permitted by this Agreement.” The language suggests that Disney+ will offer a new option to share accounts outside of the primary user’s home.
The notification to Canadian subscribers is part of the updates to the Disney+ subscription agreements to clarify the rules related to account sharing, then the same will be done in the United States and it is understood that also in the rest of the countries, including including Spain. .
Disney CEO Bob Iger announced this summer that the company was embarking on a strategy to monetize those who use other people’s passwords on streaming accounts. “We are actively exploring ways to approach account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger said during Disney’s Aug. 9 quarterly earnings call. “Later this year, we will begin updating our subscription agreements with additional terms on our sharing policies and launch tactics to drive monetization sometime in 2024.”
Meanwhile, starting November 1, the company will launch the ad-supported Disney+ bundle in Canada (priced at $7.99 per month), the United Kingdom and eight European countries. In a quest to increase revenue from users who share passwords, Disney is following the path blazed by Netflix, which launched its “paid sharing program” in mid-May in more than 100 countries. The goal is to push those who benefit from other people’s passwords to foot their own bill, or to encourage customers to add non-family users as “additional members.” In the second quarter, Netflix added 5.9 million subscribers, more than double analysts’ most optimistic forecasts, which executives attribute largely to the launch of paid sharing. At an investor conference last month, Netflix co-CEO Greg Peters said, “We’ll be in the password-sharing business for a while.”
On the other hand, starting this month, Disney is raising prices for standalone premium tiers of Disney+, Hulu, and ESPN+ in the United States. Starting October 1, Disney+ Premium (ad-free) increases to $13.99 per month, an increase of $3; Ad-free Hulu will also increase by $3 to $17.99 per month; and ESPN+ will increase by a dollar, to $10.99 per month. Everything indicates that the same thing will happen soon in Spain.
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