Walt Disney is preparing to implement measures to deter password sharing on its streaming platform, Disney+, in Canada starting from November 1, 2023. Subscribers in Canada have reportedly received emails outlining new account sharing rules, which aim to ensure that the streaming service is primarily used within households. A spokesperson from Disney confirmed the upcoming changes to The Hollywood Reporter.
This move by Disney comes as streaming platforms in the United States are exploring ways to drive subscribers towards ad-supported tiers. In an August earnings call, Walt Disney CEO Bob Iger announced that the company would begin restricting account sharing as prices for its ad-free tiers of Disney+ and Hulu increased. While Iger did not provide a specific timeline for the crackdown on shared password accounts, he hinted at the financial benefits that would materialize in 2024. It is understood that Walt Disney has already started updating its subscriber agreements to “clarify the rules relating to the sharing of accounts” in several markets, initially in Canada and followed by the US later this year.
The shared account restrictions are expected to be implemented on November 1 in Canada, before being rolled out to the US and other global markets, likely in 2024. According to Engadget, which first reported on the account sharing crackdown in Canada, the Disney+ email notice to subscribers states, “Unless otherwise permitted by your service tier, you may not share your subscription outside of your household.”
Disney+ also informs subscribers in amended legal terms that they may face access limitations or termination of service if they are found to be in violation of these rules. The new account sharing terms explicitly state that password sharing will be prohibited, “unless otherwise permitted by your Service Tier.” This suggests that password sharing may still be allowed under certain circumstances, and subscribers may potentially have the option to pay for additional viewers for an account beyond their household in the future.
Disney is following Netflix’s lead in implementing a shared password crackdown. Netflix introduced similar measures in Canada, New Zealand, Portugal, and Spain, with the US market following suit after resolving technical issues. Netflix now requires primary account holders to define their household location as the people who live in the same place as the primary subscriber. Like Disney+, non-paying viewers on Netflix who are not part of a primary household are expected to become paid subscribers themselves.
Overall, it seems that password sharing on streaming platforms is becoming a growing concern for companies like Disney and Netflix. By implementing stricter rules and deterrents, these platforms hope to ensure that their content is accessed only by authorized users and to drive subscription revenues. However, it remains to be seen how effective these measures will be in deterring password sharing and whether they will have any significant impact on subscriber numbers and profitability in the long run.
