Disney Plus is set to enforce stricter rules on password sharing, similar to Netflix's recent approach. According to a report by The Verge, Disney CEO Bob Iger announced during an earnings call on Wednesday that the company will begin enforcing rules against sharing passwords with individuals outside of one's household starting in earnest this September.

Initially, Disney's plans to restrict password sharing were somewhat vague. In February, the company revealed its intention to introduce paid sharing and began notifying users about the upcoming changes. By June, Disney had implemented paid sharing in a few countries but did not specify a timeline for the US. Now, Disney is committed to extending paid sharing to more subscribers by September, although the additional cost has not been disclosed.

Disney's strategy mirrors that of Netflix, which introduced paid sharing last year, charging an extra $7.99 per month to add another person to an account. Despite initial concerns, Netflix's crackdown on password sharing has largely been accepted by its users. Iger noted that Disney has not faced significant backlash from users regarding the notifications and measures taken so far.

In addition to the password-sharing crackdown, Disney plans to increase subscription prices for Disney Plus, Hulu, and ESPN Plus starting in October. Iger expressed confidence that the price hikes would not result in a significant loss of subscribers, emphasizing that the company intends to add more value through new content such as ABC News Live and curated playlists, which he believes will help justify the higher prices.

The decision to crack down on password sharing and raise subscription prices comes as Disney Plus, Hulu, and ESPN Plus turned a profit for the first time this quarter. Disney aims to maintain profitability by enhancing revenue streams through paid sharing and increased subscription costs. By following a similar path to Netflix, Disney hopes to curb password sharing while ensuring the financial success of its streaming services.

As Disney rolls out these changes, subscribers should prepare for new rules and higher prices, reflecting the company's broader strategy to boost revenue and sustain the success of its streaming platforms.

Netflix's earlier measures to restrict account access to within a single household were initially met with some criticism but ultimately led to a significant increase in paid subscriptions, demonstrating a successful model that Disney now seeks to emulate.