- Competitive struggle over shared subscriptions on streaming platforms
Once upon a time, it was blissful having less streaming services, with fewer ads and the luxury to share passwords freely among family and friends. Alas, those times have long vanished, and Netflix, pioneering the shared account issue last year, Disney+ is now mirroring its steps.
The initiation
As early as February, whispers countered that Disney+ aimed to mimic Netflix's strategy, curbing password sharing. Variety, an industry magazine, reported that American customers had received notice about updates to Disney+'s terms of service. It was outlined that password sharing with individuals residing outside the household was unauthorized.
Hugh Johnston, the CFO of The Walt Disney Company, reportedly informed investors during a call that this was an initial phase. Starting from the summer, Disney+ accounts suspected of unlicensed sharing would be presented with options. Account holders could opt to include more people outside their household for an extra fee. This move promised to enhance the "customer experience," but whether that would be perceived as an improvement was left to be determined.
Germans peering at the terms of service would locate similar information. Effective August 17, 2024, section 1.1(c) stated that sharing the account beyond a household was prohibited except in circumstances allowed by subscription options. Detection of unauthorized sharing prompts "technical measures" enacted to prevent account usage beyond the household, the specifics of which remained clouded. "Additional members" were also mentioned, who were not permitted to share their account with others further.
The shared accounts confrontation enters its next level
Apparently, shared accounts' demise is near. In April, Disney CEO Bob Iger, in an interview with "CNBC," revealed plans to be the "first to seriously challenge" shared passwords, anticipated in June. In limited countries and markets, such a rollout was slated by summer, with a "full implementation" come September.
Iger reiterated, according to the tech portal "The Verge," that the battle against sharing would "really start" in September. Though not confirmed for Germany, "additional members" mentioned in the terms of use suggests such an introduction may not be distant.
A Disney+ subscription in Germany currently ranges from 5.99 euros (with ads) to 11.99 euros (ad-free), or 119.90 euros yearly, contingent on the package elected. The price for "additional members" is yet undisclosed. In contrast, Netflix offers plans from 4.99 euros (with ads) to 19.99 euros (ad-free), with an "additional member slot" costing 4.99 euros (but is unavailable in the lowest-cost subscription tier). A new user sharing an account must shell out at least 13.99 euros monthly, plus a surcharge for the additional slot.
Disney+ could potentially become costlier in the near future
Beyond engaging paid premium subscribers, the price for Disney+ in Germany might surge soon. Recently, escalated prices for Disney+, Hulu, and ESPN+ were announced for the US market. Although Germany-specific announcements remain absent, Disney has confirmed to the portal "Golem.de" that "prices worldwide will be increased in selected markets at varying times throughout the year." Consequently, customers should prepare themselves for such hikes.
After Variety reported changes to Disney+'s terms of service, limiting password sharing to household members only, Hugh Johnston suggested that this was just the beginning. Starting from the summer, accounts suspected of unauthorized sharing would be presented with options, including paying an extra fee to include more people outside the household. Password and password misuse could lead to technical measures being enacted to prevent account usage beyond the household.
With Disney planning to "seriously challenge" shared passwords by September, the shared accounts confrontation enters its next level. While the exact price for "additional members" is yet undisclosed, customers should be prepared for potential price increases in select markets, following escalated prices in the US market for Disney+, Hulu, and ESPN+.
