Following Netflix, Disney starts crackdown on password sharing
What's the story
Disney+ has informed its Canadian subscribers that starting November 1, they will be cracking down on password sharing.
In an email, the company urged users not to share their subscriptions outside their households.
Although the specifics of enforcement are still hazy, Disney's updated Help Center and Canadian subscriber agreement suggest that they may monitor account usage and impose limits or even terminate accounts if users don't comply.
Details
CEO Bob Iger addresses shared accounts
During a recent earnings call, Disney CEO Bob Iger admitted that password sharing is a problem and said the company is "actively exploring" ways to tackle it.
He noted that a "significant" number of people share passwords across Disney's platforms and added that the company has the "technical capability" to track sign-ins.
This implies that Disney might use technology to enforce its new password-sharing policy.
What Next?
Disney+ joins Netflix in tackling password sharing
Disney Plus isn't the first streaming service to address password sharing.
Netflix has been experimenting with shared account restrictions in various countries for over a year and started enforcing them in the US and other countries in May 2023.
Netflix's approach involves limiting accounts based on a user's IP address and allowing subscribers to add more members to their accounts for an extra fee, depending on their chosen plan.
Insights
Impact on subscribers
The efforts to clamp down on password sharing could result in more subscription revenue as users either sign up for individual accounts or add extra members to their existing plans.
However, it's still uncertain how these restrictions will be enforced. More companies will surely adopt similar strategies to safeguard their content and revenue streams.
Disney+ Hotstar (as it is called in India) has not announced any password-sharing crackdown yet.