Disney+ and Hulu launch crackdown against password sharing, hike prices

Disney announces higher rates for ad-free streaming, coupled with measures to combat password sharing.

New rates revealed by Disney for ad-free Disney+ and Hulu Subscriptions, alongside password sharing crackdown strategy. (AP)

Disney is set to roll out a series of changes to its streaming services in the coming weeks, marking a significant shift in its streaming portfolio. The entertainment conglomerate has declared its intention to raise the subscription fees for both ad-free versions of Disney+ and Hulu, while also revealing plans to tackle the issue of password sharing.

Updated Subscription Rates for Hulu and Disney+

Starting from October 12, Disney's new pricing structure will come into effect for its ad-free Disney+ and Hulu offerings. Here's a breakdown of the modifications (via 9to5Mac).

1. Disney+ with Ads: The subscription fee will remain at $7.99 per month.

2. Ad-Free Disney+: The subscription cost will increase to $13.99 per month, up from $10.99.

3. Hulu with Ads:  No change, continuing at $7.99 per month.

4. Ad-Free Hulu: The subscription cost will be raised to $17.99 per month, up from $14.99.

Introduction of a New Bundle and Live TV Adjustments

Accompanying these price adjustments, Disney is unveiling a bundled offer featuring ad-free versions of both Hulu and Disney+ at a combined monthly rate of $19.99. This package will launch in the United States on September 6. Additionally, the company has announced changes to its Hulu + Live TV packages:

The ad-supported plan will see a price hike of $7, with the new cost at $76.99.

The ad-free plan will experience a similar increase, reaching $89.99.

ESPN+ pricing will also see a modest increase from $9.99 to $10.99 per month.

Crackdown on Password Sharing

Speaking during Disney's recent quarterly earnings call on August 9, CEO Bob Iger addressed the pressing concern of password sharing across Disney+ and Hulu accounts. Iger outlined that the company is actively seeking solutions to curtail this practice and is poised to initiate changes later this year.

"We possess the technological capabilities to closely monitor much of this phenomenon. While I won't divulge precise figures, I can attest that it's of significant magnitude. Addressing this matter has become a pivotal focus, and we perceive an opportunity to not only rectify this but also foster our business growth."

Though changes to subscriber agreements and terms are expected later this year, it may take until 2024 for the technical implementations necessary to curb password sharing to be fully realized, as per the timeline suggested by Disney's CEO.

In short, These changes signify a notable transformation in Disney's streaming landscape, involving pricing adjustments, innovative bundles, and a proactive approach to resolving challenges like password sharing.