Disney CEO Bob Iger recently provided further insight into Disney+'s strategy to address the widespread issue of password sharing during the company's quarterly earnings call. The approach will be gradually implemented starting this June in select markets, with a full global rollout anticipated by September. This crackdown aims to bolster Disney+'s subscriber base, while enhancing the profitability and sustainability of the service.

A Methodical Approach to Implementation

Iger emphasized the importance of executing the password-sharing crackdown in a measured and strategic manner. "We're just getting started," he said, underscoring the meticulous planning that has gone into devising this step. He also indicated that Disney intends to conduct this crackdown methodically, applying lessons from Netflix's own successful approach. "We are heartened by Netflix's results and see them as the gold standard," Iger said. He believes Disney can achieve similar outcomes, especially given the brand’s strong global reputation and established subscriber base.

The crackdown will start in smaller, controlled markets to evaluate the implementation process and customer responses before expanding worldwide. The feedback and data collected from this phased rollout will inform refinements in Disney's strategy, ensuring that broader markets can adopt it more smoothly.

Subscriber Education and Transition

Recognizing the importance of transparency and maintaining user trust, Disney is prioritizing clear communication throughout the transition. Disney+ users will be notified via email about the changes to their account-sharing practices. Those affected will be given ample time and options to make adjustments. Iger said accounts detected violating the new rules will receive an opportunity to set up their own subscriptions, or they can opt to pay an additional fee to keep sharing with family and friends who live outside the primary household.

Disney has also updated its terms of service across all its streaming platforms, including Disney+, ESPN+, and Hulu. These terms explicitly outline the limitations on password sharing. The company aims to discourage sharing by making the terms clearer and emphasizing potential consequences.

A Strong Content Lineup to Drive Growth

To support the success of this initiative, Disney has been working on an impressive lineup of content to incentivize sharers to create their own subscriptions. Blockbuster movie sequels such as *Inside Out 2* and *Moana 2*, as well as original titles like *Mufasa: The Lion King* and *Marvel's Deadpool and Wolverine*, will help draw viewers to Disney+. Additionally, sports fans can look forward to exclusive ESPN content integrated into Disney+, thanks to long-term deals with sports organizations such as the NCAA and NFL, and possibly the NBA.

This increased focus on content diversity aims to cater to a broad range of subscriber interests and encourage them to keep their subscriptions long-term. "We stack up really well," Iger said, pointing out the quality programming across all Disney's streaming services.

Technical Capabilities and Detection

Disney has been developing the technical capabilities required to monitor password sharing for some time now. The company's advanced analytics will identify sharing patterns outside of a subscriber's primary household, allowing them to detect and respond to misuse effectively.

The implementation will be gradual, starting with a few markets to ensure data accuracy and minimize disruption for legitimate users. The gathered insights will guide their approach and messaging when expanding the crackdown worldwide.

Ensuring Long-Term Subscriber Engagement

While curbing password sharing is a key priority, Disney is also focused on strengthening subscriber retention. Iger acknowledged that eliminating password sharers may not immediately translate into significant subscriber growth. However, he's confident that Disney's diverse programming and strategic pricing will entice former sharers to sign up for their own subscriptions. 

Moreover, Disney will continue to analyze subscriber behavior and adjust its strategy as needed to stay competitive. The combination of these efforts is expected to improve the company's bottom line while maintaining high customer satisfaction.

Iger concluded with optimism, reaffirming Disney's commitment to providing valuable entertainment and ensuring a superior customer experience. "With this approach, we're looking forward to reaching new audiences and improving our business overall," he said.