Disney+’s long-awaited crackdown on free riders has officially begun.
Walt Disney Co.’s flagship streaming service will now require subscribers to pay extra if they want to allow people outside their household to access the service.
The plan, announced earlier by the Burbank entertainment giant, is aimed at boosting revenue for its streaming services as it seeks to grow subscribers and boost profits, a top priority for Chief Executive Officer Bob Iger.
Subscribers who want to add external users can do so using a feature the company calls “additional member add-ons.”
In a blog post on Wednesday, Disney said that in the U.S., adding additional members will cost $7 per month for Disney’s “Basic” plan with commercials and $10 per month for the ad-free “Premium” plan. Only one additional member is allowed per account.
The move comes as Disney+ and Hulu have steadily raised prices in an effort to reach profitability.
Starting next month, the ad-supported monthly price for Disney+ will rise from $8 to $10, the commercial-free version will rise from $14 to $16, and the annual price will rise from $140 to $160.
The additional membership feature is not available to Disney bundle subscribers or those who are billed by distributors, such as pay TV operators.
Disney and other video-streaming companies are following the lead of Netflix, which launched a paid password-sharing program last year. The strategy, introduced after the Los Gatos-based company reported declining subscriber numbers, has been credited with improving Netflix’s revenue in the following quarter.