This week, Disney+ officially rolled out its paid sharing program, introducing new rules aimed at limiting password sharing and unauthorized access outside of primary households. This move is part of Disney’s broader strategy to increase revenue and profitability in its direct-to-consumer streaming services.

How the Paid Sharing Program Works

The new paid sharing feature lets Disney+ subscribers add one Extra Member outside their Household for an additional fee. In the U.S., this will cost $6.99 per month for Disney+ Basic and $9.99 per month for Disney+ Premium. The Extra Member add-on is available in multiple regions, including the U.S., Canada, Europe, and Asia-Pacific, expanding on a soft launch conducted over the summer.

Disney defines a Household as “a collection of devices associated with your primary personal residence used by the individuals who reside there.” Anyone outside the Household must now either sign up for their own subscription or be added as an Extra Member to an existing account. However, this option isn’t available for subscribers billed through third-party partners or those subscribed to the Disney Bundle.

Why Is Disney+ Introducing Paid Sharing?

This shift aims to crack down on password sharing and unauthorized access, a problem that streaming platforms like Disney+ and Netflix have faced for years. The timing aligns with Disney’s plans to increase subscription prices next month, signaling a concerted effort to enhance revenue streams from its direct-to-consumer segment. Disney saw the potential success of this approach following Netflix’s similar crackdown on password sharing, which led to a noticeable increase in subscriber growth.

INSIDER TAKE

Disney+ is following in Netflix’s footsteps, but with a measured approach. By allowing one Extra Member add-on per account, they’re aiming to strike a balance between curbing unauthorized access and maintaining customer goodwill. This move, paired with the impending price hikes, signals that Disney is taking its profitability seriously, especially after reporting a profit in its direct-to-consumer segment for the first time in Q3 2024.

Disney+’s move is also part of a growing trend among major streaming services to tighten control over account sharing. With Warner Bros. Discovery’s Max also planning to enforce password-sharing restrictions later this year, it’s clear that the industry is gravitating toward stricter account management to protect revenue. As these companies mature, they’re increasingly focused on profitability rather than pure subscriber growth, and managing account sharing is a key component of this strategy.

For streaming subscribers, this industry shift may be a wake-up call to reassess their streaming habits. As more platforms crack down on password sharing, consumers might need to be more selective about which services they choose to maintain or add to their subscriptions. This tightening of access could signal a new phase in the streaming wars, where companies prioritize revenue growth over the race to the highest subscriber count.