The era of freely passing around your Disney+ or Hulu passwords like coveted candies at a Halloween soirée may soon come to an end. That's right, CEO Bob Iger dropped the bombshell during a recent Q3 earnings call, revealing that The House of Mouse’s streaming juggernauts, Disney+ and Hulu, might soon follow in Netflix’s once-controversial footsteps of implementing new password-sharing rules, eyeing a crackdown of their own.
According to Indiewire’s reporting, Iger mentioned that during their Q3 earnings call, the company could already track password sharing. While he didn't specify how many subscribers were sharing accounts, he emphasized that the number was significant. He also said he believes they can “grow business” if they explore solutions to address the issue “properly.”
Recently, the entertainment powerhouse started trialing password-sharing limitations on users in India. Before this, the platform permitted access from 10 devices at once. Now, this has been curtailed to just four concurrent devices. In the U.S., though their official policy allows four devices to access simultaneously, it often accommodates up to 10 devices using the same credentials.
While Amazon joined users in roasting Netflix for their new password policy, a recent survey of industry experts predicted that following the movie streamer’s move to curb password sharing last year, Disney+ would likely be next, with Max also in the discussion.
Disney’s strategy of initially implementing restrictions overseas and then introducing them domestically is reminiscent of Netflix's method, first experimenting with regulations in select South American nations before moving on to Canada, New Zealand, Portugal, and Spain by the start of 2023. The U.S. saw the introduction of a 'paid sharing' model in May 2023, where account holders would be charged to include users from different households. This strategy was fruitful for Netflix, as they witnessed an influx of six million new subscribers between April and June. A significant portion of these, according to the company, were individuals who previously were sharers.
Since the dawn of streaming, sharing passwords with family or close friends has been as commonplace as movie nights or binge-watching weekends. With a little Amazon Video Prime here and a dash of Hulu there; the tradition of group streaming has been a way of life for many, especially younger streamers. Initially, platforms seemed almost complicit, or at the very least, didn’t appear to be losing sleep over the issue. But if you are wondering how to watch Season 3 of Only Murders In the Building, it seems very soon you’ll need your own Hulu subscription.
Disney's potential tightening on password sharing aligns with its broader financial objectives. In the recent quarterly financial update, Iger mentioned that they are “progressing beyond our primary savings target of $5.5 billion." This emphasis on savings led to the layoff of 7,000 staff, the shuttering of the Star Wars: Galactic Starcruiser, and the removal of a notable amount of original content from their streaming platforms.
Marrying the impending password crackdown with price surges, especially amidst the ongoing writers and actors strikes, has understandably ruffled consumer feathers. But here's the silver lining – or at least, a glimmer of one. Following Netflix's lead may not be entirely misguided because, after their crackdown, they witnessed an uptick in subscribers and, crucially, profits. According to a 2020 report, streamers lost over $9 billion combined in 2019. While it is undoubtedly challenging for some to get too worked up over corporate profit loss, this seemingly tough-love approach to business could pay off for the entertainment titans. And hopefully, an uptick in profits will translate to new shows that last more than a season. I'm still upset about the cancellation of 1899!
We'll keep you posted on any changes to Disney’s password policy. In the meantime, get caught up on all their best shows with our streaming schedule!
