Walt Disney’s streaming division, Disney+ has finally revealed its plan to tackle password sharing. The company has introduced a new feature called “paid sharing” across multiple regions like the United States, Europe, and Asia-Pacific. DIS aims to ramp up streaming revenue by pushing users towards individual subscriptions.
Users are set to face a tough time evading Disney’s clampdown as the company will monitor various factors such as subscription activity, linked devices, and internet connection to discern a user’s household. If the system detects unauthorized use from outside the household, users may be prompted to confirm their location.
Following Netflix’s lead, Disney+ joins the league of streaming platforms cracking down on password sharing. Netflix’s similar initiative last year led to a surge in subscriber numbers, highlighting the financial advantages of such restrictions. Warner Bros. Discovery’s Max also plans to limit account sharing soon to bolster revenue and hinder unauthorized access.
Disney Reveals Paid Sharing Options
Delving into the sharing restrictions, let’s examine the two options Disney offers for users aiming to continue account sharing:
- Add an Extra Member: Basic tier users can add an external member to their account for an additional monthly fee of $6.99. Premium-tier subscribers will incur a fee of $9.99. Notably, each account can only host one additional member.
- Transfer Profile: Individuals leveraging someone else’s account can transition their profile and viewing history to a new account by subscribing independently.
DIS Makes Efforts to Improve Profitability
Besides focusing on password sharing, Disney is undertaking various strategic moves to enhance its financial performance. This includes upping the prices of its two subscription plans from October. The ad-supported Basic tier will see a hike from $7.99 to $9.99, while the ad-free tier goes up from $13.99 to $15.99.
Furthermore, the company is implementing cost-saving measures by slashing approximately 300 jobs across divisions like legal, human resources, finance, and communications.
Is Disney a Good Stock to Buy?
Analysts on Wall Street seem positive on DIS with a Strong Buy consensus rating based on 18 Buys and four Holds in the last quarter. The average Walt Disney price target is $117.65, suggesting a 25.27% upside potential. Year-to-date, Disney’s shares have gained approximately 4.5%.
