Disney+ plans to follow the move set by its rival and will take steps to curb password sharing among its users. The company’s chief executive, Bob Iger, noted that methods are being actively researched to end what he called an important practice.
The Walt Disney Company’s leader confirmed on Thursday that new terms for account sharing will be announced later this year and will take effect sometime in 2024.
What remains uncertain is how much password sharing might convert into more subscribers. Iger said they expect some impact but did not speculate about the exact outcome.
more expensive prices
For the second time in roughly a year, Disney will raise the price for its streaming services. The ad-free versions of Disney+ and Hulu will cost 20 percent more in the United States. Starting September 6, subscriptions to each platform will be $19.99 per month.
This price move aims to stabilize the company’s business during a volatile period and push toward profitability in the streaming segment by next year. Iger told investors that the streaming business remains in an early stage. The company recently completed layoffs totaling about 7,000 roles, roughly 3 percent of the global workforce, as part of its strategic adjustments.
Plan with advertising
The world’s largest media and entertainment group announced a new advertising supported plan will roll out on November 1 in Europe and Canada. The model, already available in the United States, is cheaper because it includes commercials during programming. It will be priced at 5.99 euros per month in Europe and 7.99 dollars in Canada. Netflix previously expanded its lower cost plan to additional regions last year.
Disney+ subscribers outside the United States will have access to various subscription options with a broad range of prices. The company will introduce a new Standard tier and an Ad-Standard tier in select markets across Europe, Canada, the Middle East, and Africa.
Results
The announcements came during the fiscal third quarter results presentation. Disney reported earnings that quarter including a net attributable income of about 460 million euros and a profit near 1.41 billion euros for the year 2022. Revenue from the company’s operations rose modestly to around 22.33 billion dollars in the April to June period.
The Walt Disney Company noted that its media and entertainment segment generated about 14.0 billion dollars in revenue, slightly lower year over year. The theme parks division posted a strong quarter with revenue around 8.33 billion dollars, marking a solid growth trajectory.
However, Disney+ in the United States saw a loss of subscribers for a second consecutive quarter. The service now counts roughly 105.7 million subscribers, Hulu about 48.3 million, and ESPN+ around 25.2 million.