Disney+ Follows Netflix, Clamps Down on Subscription Sharing Amid Strategic Shifts
Portfolio Pulse from Anusuya Lahiri
Disney+ is tightening its subscription sharing rules, prohibiting sharing outside of one's household unless permitted by the service tier. This is part of Disney's strategy to monetize account sharing. Disney+ is also launching an ad-supported plan in Canada, the U.K., and eight European countries. Furthermore, Disney is increasing the prices of its premium subscription tiers in the U.S. The company is also exploring strategic partnerships for ESPN and plans to double its capital expenditures at its Disney Parks, Experiences, and Products segment.
October 03, 2023 | 11:55 am
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POSITIVE IMPACT
Netflix's 'paid-sharing program' has significantly boosted its subscriber numbers.
Netflix's 'paid-sharing program' has been successful in converting password borrowers into paying subscribers, which has boosted its subscriber numbers and could potentially increase its revenue.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Disney's new subscription rules and price increases may lead to a short-term decrease in subscribers but could potentially increase revenue in the long term.
While the new rules and price increases may initially deter some subscribers, they are part of Disney's strategy to enhance revenue. The impact on the stock price will depend on how these changes affect subscriber numbers and revenue in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100