Disney+ has stated its intention to crack down on password sharing, similar to Netflix’s recent moves, beginning with Canadian subscribers on November 1. This decision is in line with Disney’s ongoing efforts to address account sharing and lower streaming prices.
According to emails received by Canadian subscribers, Disney is set to update its terms of service to prohibit account sharing. The new terms state, “Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household. ‘Household’ means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein. Additional usage rules may apply for certain Service Tiers.”
The decision comes earlier than expected, as Disney CEO Bob Iger previously stated in August that the company would begin implementing password-sharing mechanisms in 2024.
However, Disney’s streaming division’s recent financial difficulties have demanded an urgent response. In the third fiscal quarter of 2023, the division recorded a $512 million deficit, causing Disney to take action to protect its revenue streams.
Furthermore, Disney recently raised the pricing of its ad-free Disney+ and Hulu plans, with the ad-free Disney+ subscription now costing $13.99 per month in the United States and the ad-free Hulu subscription costing $17.99 per month. These pricing increases are considered as part of Disney’s efforts to increase streaming revenue.
While the crackdown on password sharing will begin in Canada, similar rules are expected to be imposed in the United States and other nations in the near future. Netflix adopted similar efforts earlier this year, prohibiting password sharing across households via IP address and location tracking, which resulted in an increase in new signups.
As the streaming landscape evolves, it appears that password sharing, once a common practice, is facing increased scrutiny from major streaming platforms, signaling a shift in how these companies approach subscription access. Disney’s move in Canada is just the beginning of what may become a broader industry trend.
