Disney Plus will launch a password-sharing crackdown this summer

Disney's password-sharing crackdown will officially begin this summer. During an earnings call Wednesday, Disney Chief Financial Officer Hugh Johnston said Disney Plus accounts "suspected of inappropriate sharing" will see an option to sign up for their subscription.

Disney will also start letting account holders add people outside their household for an "additional fee" — but it didn't say how much it will cost. "We want to reach as large an audience as possible with our excellent content," Johnson said. “We are looking forward to introducing this new functionality to improve the overall customer experience and grow our customer base.”

This year, both Disney Plus and Hulu have updated their terms of service to restrict users from sharing their subscription with people outside their household. The new terms began applying to new customers on January 25, but will apply to existing members from March 14. Netflix launched a similar version of paid sharing last year, requiring subscribers to spend an extra $7.99 per month to add someone located outside their household.

"Paid sharing is an opportunity for us," Johnson said. "That's something that our competitors are clearly taking advantage of, and one that we have in mind... We have some very specific actions that we're taking over the next few months."

This comes as Disney Plus plans to launch an in-app experience with Hulu in March after releasing it in beta last year. The company's earnings report also showed that Disney Plus lost 1.3 million subscribers in the US and Canada after a price increase last year, while Hulu added 1.2 million subscribers.

On Tuesday, Disney-owned ESPN revealed plans to launch a new live sports streaming service in partnership with Fox and Warner Bros. Discovery. The yet-to-be-named service will launch this fall and will also be available to Disney Plus bundled subscribers with Hulu and ESPN Plus. News of the service also comes as Disney plans to launch a direct-to-consumer version of ESPN in August 2025, reflecting a move away from pay TV amid declining viewership and a shrinking advertising market.