Disney (DIS.US) launches "Premium Subscription" feature, initiates new round of layoffs
1min read Following the success of rival Netflix's (NFLX.US) "password sharing" plan, Disney (DIS.US) has also launched a crackdown on password sharing for its Disney+ streaming service.
Disney+ rolled out the extra paid sharing feature in additional regions after testing it in several areas this summer in the US, Canada, Europe, Costa Rica, Guatemala and the Asia-Pacific.
The move is aimed at generating revenue streams from those who essentially use the service "for free" by using credentials of other paying users. When Netflix launched its paid sharing plan/password sharing crackdown, the company said it estimated about 100 million users were using its service through password sharing, but not paying.
Netflix added more than 2 million users after launching its paid sharing feature, and analysts expect Disney to benefit from its new subscription service as well.
Disney said that "Disney+ subscriptions are for your household only," adding that people outside of the household need to register for their own subscription or pay extra to become members (Disney+ basic is $6.99 per month in the US, Disney+ premium is $9.99 per month).
Like Netflix, Disney is simplifying the process of transferring existing profiles to new subscriptions and sending warnings to suspicious devices, asking for email password permissions.
Another round of layoffs
At the corporate level, Disney is also planning another round of layoffs as part of its ongoing efforts to improve the profitability of its business.
The company said in an email statement on Wednesday: "As part of this ongoing optimization work, we have been reviewing the cost structure of corporate functions and identifying ways to improve operational efficiency."
About 300 jobs in the legal, human resources, finance and communications areas are reportedly affected. Departments including ESPN and theme parks were not affected by this round of layoffs.
Disney began cutting costs last year and eventually laid off 8,000 people. Like rivals Paramount Global (PARA.US) and Warner Bros. Discovery (WBD.US), the company has been struggling with declining traditional television ratings and the rise of new generation streaming services.