Disney's crackdown on password sharing will officially begin this summer. During Wednesday's earnings call, Disney Chief Financial Officer Hugh Johnston said that Disney Plus accounts "allegedly shared improperly" will have the option to repurchase the subscription tier that suits them, and Disney will begin allowing account holders to add people outside their household "for an additional fee," but did not specify how much the fee would be.
"We want our great content to be seen by the largest audience possible. We look forward to rolling out this new feature to improve the overall customer experience and grow our user base," Johnston said.
This year, both Disney Plus and Hulu updated their terms of service to prohibit users from sharing their subscriptions with people outside their household. The new terms will apply to new users starting on January 25th, but will apply to existing members on March 14th. Netflix already launched a similar paid sharing version last year, which cost users an extra $7.99 per month to add people outside their household.
"Paid sharing is an opportunity for us," Johnston added. "Our competitors are clearly taking advantage of this opportunity, and we are facing this opportunity... Over the next few months, we will be taking some very specific actions."
That's because Disney Plus plans to launch an app experience alongside Hulu in March this year, after launching a beta version last year. The company's financial report also showed that Disney Plus lost 1.3 million subscribers in the United States and Canada after last year's price increase, while Hulu gained 1.2 million members.
On Tuesday, Disney-owned ESPN revealed plans to launch a new live sports streaming service in partnership with Fox and Warner Bros. Discovery. The as-yet-unnamed service will launch this fall and will also be available to Hulu and ESPN Plus Disney Plus bundle subscribers. Disney plans to launch a direct-to-consumer version of ESPN in August 2025, also reflecting its transition away from pay TV amid declining ratings and a shrinking advertising market.