The process of cracking down on password sharing for Disney’s streaming service has begun. An update to the Subscriber Agreements on all three streaming services mark the first step toward this crackdown on Disney+, Hulu, and ESPN+. These changes come after Disney CEO Bob Iger announced that it would be cracking down on password sharing for Disney’s streaming services last year.
Along with the updated Subscriber Agreements, emails were sent out to Hulu subscribers. The email sent out to Hulu subscribers announced an updated Subscriber Agreement. A part of this updated agreement has to do with password sharing. In the email from Hulu, it highlights this specific change saying:
We’re adding limitations on sharing your account outside of your household, and explaining how we may assess your compliance with these limitations.
The change will go into effect on March 14, 2024. The Subscriber Agreements for Hulu, Disney+ and ESPN+ all forbid password sharing outside of an individual’s household. “You agree not to impersonate or misrepresent your affiliation with any person or entity, including using another person’s username, password or other account information, or another person’s name or likeness, or provide false details for a parent or guardian,” the policy states. It also states that Disney will analyze users’ activity to help ensure compliance with password sharing rules. Those who violate the terms could see their access to the streaming services limited or even terminated. The full Subscriber Agreement can be found here.
The updates come after Bob Iger indicated that these would be coming last August during an earnings call. “We certainly have established this as a real priority,” Iger said on Disney’s fiscal third-quarter earnings call. “We actually think that there’s an opportunity here to help us grow our business.”
It is expected that Iger will discuss this in further details on the next earnings call on February 7. Disney believes that this change in policy will lead to similar results to Netflix. Netflix cracked down on password sharing and saw a burst of new subscribers as former password sharers no longer could access the content. This led to Netflix announcing a record number of subscribers for its fourth quarter last year.
What do you think of Disney cracking down on password sharing? Will it lead to an increase of subscribers on its streaming services? Share your thoughts and opinions in the comments below!
