Why is Disney+ cracking down on password sharing?
Just a few years ago, the streaming industry was more concerned about growth than revenue, and as long as subscriber numbers grew, investors were happy. And while the big streamers didn’t condone password sharing, they weren’t terribly concerned about it, either—after all, today’s password-sharing freeloader could become tomorrow’s paying subscriber, right?
Now, it’s all about profitability rather than sheer growth, and the streamers—including Disney (which, remember, owns Disney+, Hulu, and ESPN+) are focused on revenue and belt-tightening. Price hikes and cheaper ad-supported tiers are two ways to generate more cash, while cracking down on password sharing is a third.
Disney also has its eyes on Netflix, which just rolled out its own—quite successful—password-sharing crackdown, so it’s no surprise that Disney+ (along with Hulu and ESPN+) is next.
