Disney+ Takes Bold Steps to Boost Subscriptions

Following in Netflix's footsteps, Disney+ is now banning account sharing and plans to introduce ads in all its subscription plans.

Previously, like Amazon and Netflix, Disney++ offered a basic ad-supported package. However, in a recent email to subscribers, the company stated that "all subscriptions may include limited advertising content, promotional content, Disney brand information, sponsorship messages, and more, including ads in live content or special events with traditional ad breaks."

In practical terms, this means that no subscription plan will be ad free. These changes will take effect in 30 days.

Users accessing the platform from locations other than their home will see a message explaining they are not at home and suggesting they create their own account. Disney+ clearly indicates that the service has ways to monitor user activity. This also applies to people who regularly use the platform through a web browser with an ad blocker, or with a VPN.

Additionally, Disney+ will introduce a paid option called "Extra Access" to add additional households to accounts, similar to Netflix's approach. This will cost $5.99 per new household.

This decision is not surprising, given the platform's need to boost its revenue. After heavily investing in the production of original series and movies, especially for Star Wars and the Marvel universe, the company is facing profitability issues. This isn't the first time Disney+ has followed Netflix's lead. Last November, it launched the Standard with Ads package, a subscription partially funded by advertising, and raised prices globally. With these measures, Disney+ hopes to gain millions of new subscribers, just as Netflix did.

Disney+'s decision to ban account sharing and introduce ads in all subscription plans could lead to significant fallout, including customer dissatisfaction, increased costs, and subscribers deciding to switch to competitors or cancel subscriptions, limiting the amount of subscription services they use. While these changes aim to boost revenue through ads and additional household subscriptions, Disney risks damaging its reputation and receiving negative publicity. As families continue to feel the impact of inflation, they might not take Disney's decision to focus on profits too kindly.