5 Lessons Disney Can Learn From Netflix

Disney CEO Bob Iger said on a recent earnings call that Disney+ will implement its long-planned password crackdown “in earnest” starting in September.

Password sharing has been a headache for streamers for more than a decade. For years, people shared their passwords with friends and family without consequences because streamers didn’t have the technology or clout to make them stop. Subscribers might spread around the cost by having different people subscribe to different services within a family or friend group, which could save hundreds of dollars each year.

But improvements in technology and the greater influence and reach of the streamers are ushering in a new era.

Last year, Netflix implemented its password sharing crackdown in the United States, and it seems to be working. A report from Bloomsburg Intelligence earlier this year projected that a password crackdown could net the company an estimated $4 billion by fiscal 2026.

Disney has an advantage: Netflix h created the blueprint for successfully implementing what could otherwise be an unpopular policy. Here are five lessons from the Netflix password crackdown that Disney should pay close attention to.

1. Test The Password Crackdown In Advance

Before rolling out password sharing in the U.S., Netflix tested its approach in smaller markets. That allowed the streamer to work out the kinks in the process and ensure it worked before rolling it out to a bigger audience. This is smart because just a minor glitch or two can sully a rollout—and then the streamer’s perceived incompetence, no matter how tiny the error, becomes the story rather than the potential subscriber gains.

2. Offer A Tiered Subscription Price For Add-Ons

Rather than force people who shared passwords to purchase a full-price new subscription, Netflix allowed them to buy subscriptions at a lower-than-usual price of $7.99 per month by piggybacking on the primary subscription holder’s account, a savings of about half a standard subscription.

3. Anticipate Subscribers’ Biggest Questions

Not all perceived instances of password sharing are actually legitimate.

Immediately upon Netflix’s password crackdown, people had questions. What if they had a child at college in a different city—would they be flagged as an outside user even though they were in the same household? And what if you want to use your Netflix account on vacation—would you be denied access simply because you were outside your usual zip code?

Netflix quickly provided answers to these questions and many more so that no one had to wonder about what was approved and what wasn’t. Disney should be ready with an FAQs page that addresses these questions and add to it quickly as it encounters the inevitable confusion from subscribers.

4. Offer Better Content So People Will Want To Sign Up

It’s not exactly controversial or even particularly original to note that Disney+’s most recent Marvel and Star Wars shows have missed the mark—Echo and Secret Invasion received the worst-ever Rotten Tomatoes ratings for Marvel shows, while Star Wars: The Acolyte earned an anemic 4/10 rating on IMDb.

Of course, every streamer fires a miss now and then, but it’s harder to convince new subscribers to invest in your content when it’s anything less than must-see. Disney needs to refocus its content strategy, putting out fewer shows from marquee franchises if that’s what it takes, to convince password sharers to become subscribers.

Netflix has done this effectively. It isn’t afraid to make people wait for content to ensure it’s the very best it can be—the long waits between Stranger Things and Bridgerton seasons are good examples.

5. Tout Your Successes And Do It Loudly

Netflix picked up millions of subscriptions after its crackdown, and it has crowed about those gains. And it’s a smart strategy. When people see that others are shelling out the extra sub money, they may feel better about doing it themselves. Disney should boast about early successes and be transparent if the numbers warrant it.