© Unsplash/Thibault Penin
Formerly tolerated by the company, sharing accounts outside the user's home is now prohibited by Netflix. And this strategy has paid off since the number of SVOD subscribers has increased significantly. Furthermore, like Netflix, its competitor Disney+ will also begin to crack down on users who share their passwords outside the home.
In reality, the project is not new, since Disney had already indicated, in 2023, that it was exploring different means of putting an end to this practice. But now the company is taking action. The announcement was made during Disney's traditional quarterly earnings conference call.
“Starting this summer, Disney+ accounts suspected of abusive sharing will be provided with new features allowing their borrowers to start their own subscriptions. Later this calendar year, account holders who want to allow access to people outside of their household will be able to add them to their accounts for an additional fee,” explained Hugh Johnston. , the financial director of Disney.
Strong growth in sight ?
By cracking down on abusive account sharing, Disney hopes to increase the number of subscribers and its income. But the financial director indicates that it will take some time for these efforts to bear fruit. “While we are still in the early stages and do not expect significant benefits from these paid sharing initiatives until the second half of calendar 2024, we want to reach as wide an audience as possible with our exceptional content. And we look forward to rolling out this new feature to improve the overall customer experience and grow our subscriber base”, he said.
In any case, Netflix, which already applies similar measures, has no regrets. Although the decision was controversial, it allowed Netflix to increase its number of subscribers. In the last quarter of 2023, it added 13.1 million new subscribers worldwide and exceeded Wall Street forecasts. In addition to the new measures against account sharing, Netflix also launched an affordable, but ad-supported offer, which has become extremely popular. This low-cost subscription already has 23 million subscribers and has experienced exceptional growth of 70%, from one quarter to the next.
- Like Netflix, Disney+ will crack down on account sharing outside the home
- Announced in 2023, these measures will be taken from this summer
- Netflix, which already applies its policy against account sharing, announced more than 13 million new subscribers in the last quarter of 2023
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