Disney Plus will begin cracking down on password sharing starting in June, with plans for a full rollout in September. This move comes as part of the company’s efforts to enforce new account-sharing policies and implement a fee for Disney Plus streaming customers later this year. Initially, the crackdown will be limited to a few countries and markets, but it will expand significantly over time. Subscribers who are found to be sharing their accounts improperly will be given the option to start their own subscriptions, with the ability to add individuals from outside their household for an additional fee.
Subscribers received emails detailing changes to user agreements, which now state that accounts cannot be shared with individuals outside the primary household residence. The company reserves the right to review usage habits and potentially limit or terminate access for non-compliance. This policy went into effect for new users in January and for existing customers in March. Disney CEO Bob Iger first announced plans to address account sharing in August, making it a priority for the company’s global subscriber base by 2024. The crackdown initially began in Canada and expanded to other markets, with new rules being unveiled in November.
In comparison, Netflix also charges for additional member subaccounts and has limits on how many people can be added to a Premium or Standard subscription. While the change initially faced backlash, it ultimately helped drive up subscriber numbers as former password borrowers signed up for their own accounts. Disney is also evolving its streaming business in other ways, including the full launch of the Hulu on Disney Plus single-app option and a joint venture with Warner Bros. Discovery and Fox to create a new sports streaming service. These initiatives are part of Disney’s efforts to increase monetization and further establish itself in the competitive streaming market.
The crackdown on password sharing is part of a broader trend in the streaming industry, with companies like Netflix leading the way in enforcing stricter account-sharing policies. Disney’s decision to implement fees for additional users and limit sharing to the primary household residence aligns with industry standards and aims to ensure fair usage of streaming services. Subscribers will be required to comply with these new rules or face potential consequences, such as limited access or account termination. By taking a proactive approach to account sharing, Disney is positioning itself for continued growth and success in the streaming market.
Overall, the Disney Plus password-sharing crackdown is a strategic move by the company to protect its revenue streams and ensure that subscribers are using the service in accordance with its terms and conditions. As the streaming industry continues to evolve and competition intensifies, companies like Disney are taking steps to secure their position in the market and drive subscriber growth. By offering new capabilities for subscribers and implementing fees for additional users, Disney aims to strike a balance between providing value to its customers and safeguarding its business interests. The upcoming rollout of the password-sharing crackdown will mark a significant milestone for Disney Plus and could impact the streaming habits of its subscribers going forward.
