For better or worse, now more than ever, there are many streaming services focused on entertainment. Under the shadow of Netflix, in recent years alternative platforms have emerged that have gradually carved out a niche in the market. Disney+ is very popular, but like its counterparts, it faces difficulties, and that's why it will take a step that will upset many.
The streaming bubble has burst, and now companies are trying to achieve profitability in an increasingly competitive ecosystem. In an attempt to generate more revenue, platforms have implemented measures that directly affect customers' wallets.
Disney will follow in the footsteps of Netflix and Max, so it will soon restrict a basic function: password sharing.
Disney+ to End Shared Passwords in 2024
Months ago, Disney announced its plans to restrict shared passwords for its subscription service. The measure took effect in 2023, but only in certain territories. At that time, it was warned that it would be implemented in more regions throughout 2024, and now the company's CEO has shared more details on the matter.
In an interview with CNBC, Bob Iger, CEO of Disney, announced that they will begin taking energetic measures against password sharing in June. At that time, "only a few countries and a few markets" will be affected, but it is expected that its application will significantly expand to more regions starting in September of this year.
This initiative aims to boost business profitability and subscriber growth. Disney+ is losing more money than expected because, according to Bob Iger, management focused more on increasing the number of members than on making the streaming platform profitable. In the last quarter, there were losses of $130 billion.
When the new strategy takes effect, Disney+ members will be able to pay an extra fee to share their login credentials with others.
In 2022, Netflix began restricting shared passwords, preventing users from lending their accounts to family and friends who were not in the same household. These measures aim to push people into subscribing to a new subscription or, failing that, paying an extra amount to be able to share their passwords.
Although controversial, these actions, which affected around 100 million subscribers, yielded very good results, and the streaming giant recorded an increase in its revenues in 2023. With this in mind, it's not surprising that Bob Iger is trying to replicate that success with Disney+.
"Netflix is the gold standard in streaming. They've done a phenomenal job in many different directions. In fact, I have a very, very high respect for what they've achieved. If only we could get what they have, it would be fantastic," the executive said.
JB Perrette from Warner Bros. Discovery confirmed that they will employ a similar tactic and begin to crack down on shared passwords for their Max service. On the other hand, Amazon's Prime Video will incorporate ads starting in April.
But tell us, do these measures anger you? Do you think these practices will affect users in Mexico and LATAM?
Comments
Best
New