Disney Plus will put restrictions on password sharing starting this summer

CFO Hugh Johnston announced during an earnings call that accounts suspected of improper sharing will be prompted to sign up for their own subscriptions.

Additionally, Disney will introduce the option for account holders to add individuals outside their household for an additional fee, although the specific pricing details have not been disclosed yet. Johnston emphasized the company's aim to enhance the customer experience and expand its subscriber base with these changes.

Following Netflix, which introduced paid sharing last year, Disney is positioning this move as an opportunity for growth. The updated terms of service, effective for existing members on March 14th, will enforce a ban on sharing subscriptions with non-household members.

In a separate development, Disney-owned ESPN unveiled plans for a new live sports streaming service in collaboration with Fox and Warner Bros. Discovery, slated for a fall launch.