During a recent quarterly earnings call, Disney Chief Financial Officer Hugh Johnston announced that the company will begin officially cracking down on password sharing this summer. Disney Plus accounts “suspected of improper sharing” will reportedly have the option to sign up for their own subscription, just as is already the case on Netflix. In a further move to broaden its subscriber base, Disney will introduce the ability for account holders to add people from outside their household for an “additional fee.” However, Johnston did not specify the amount of that cost. “Our goal is to reach as wide an audience as possible with our great content,” Johnston said. “We look forward to launching this new feature to improve the overall customer experience and grow our subscriber base.”
This year, Disney Plus and Hulu updated their terms of service to prohibit users from sharing their subscriptions with people outside of their immediate household. The new terms applied to new subscribers starting January 25th, but will also be extended to existing users from March 14th. The move comes as Disney Plus plans to launch a unified experience with Hulu in March, following a beta version released last year. The company's earnings report also revealed that Disney Plus lost 1.3 million subscribers in the United States and Canada following price increases last year, while Hulu gained 1.2 million members. Additionally, Disney-owned ESPN announced plans to launch a new live sports streaming service in partnership with Fox and Warner Bros. Discovery. The service, which has not yet been named, will launch this fall and will also be available to subscribers to the Disney Plus bundle with Hulu and ESPN Plus.
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