The times, they are a-changin’. On the heels of Netflix’s success with new rules against password sharing, Disney+ is preparing to stop its own customers from sharing their accounts with a non-paying user.

Canadian users were the first to see their user agreement updated this week, and now Disney has responded to The Streamable’s request for more information.

“As Bob Iger stated on our recent earnings call (Aug 2023), we are actively exploring how to address account sharing,” a Disney spokesperson told The Streamable. “We have begun updating our subscriber agreements to clarify the rules relating to the sharing of accounts in several markets, with the US coming later this year. There are no additional details to share today, but we will share further updates when appropriate.”

Boldly Go Where Netflix Has Gone Before

The phrase “actively exploring” makes it sound as if Disney+ is still determining the best methods of stopping users from sharing accounts. The company will likely recreate Netflix’s password-sharing guidelines, asking users to log into their accounts monthly from their household devices so that Disney+ knows when someone outside of that location attempts to access the account.

The use of non-American territories to test out rules against password sharing is also reminiscent of the Netflix strategy. Netflix began restricting the ability of users to share accounts in Latin American countries over a year before rolling such guidelines out for subscribers in the United States. Like Disney+, Netflix also used Canada as a testbed to see if users would revolt thanks to password-sharing rules.

Related: Why is Disney+ Introducing Password Sharing Rules Now?

Far from revolting, former Netflix password-sharers in the U.S. responded by signing up to the service in record numbers the day after guidelines were enacted. Disney and other media companies saw that reaction from users, and it’s a good bet that Disney+ won’t be the last streamer to begin the process of restricting its customers’ ability to share accounts.

Did You Read Your User Agreement?

Much like Netflix, the first word that Disney gave Canadian subscribers about its plans to crack down on password sharing came via an update to a page that customers don’t frequently read. Netflix’s first hint that restrictions against account sharing in the U.S. were imminent was an update to its Help Center page, though the company later claimed that update was erroneous.

Disney+ informed users that such rules were on the way by updating its Canadian user agreement. As the statement from the company suggests, U.S. customers will notice a similar rephrasing of their user agreements later in the year. In August, Disney CEO Bob Iger told analysts during his company's conference call to discuss its quarterly earnings report that American subscribers would see the rules introduced sometime in 2024.

The updated user agreement allows users lead-in time to get used to the idea that soon, sharing their accounts will be prevented by more than just some legalese. Active measures to stop subscribers from sharing their login information are surely coming, but first Disney has to make it explicit to users that such sharing violates their user agreement.

Disappointment surely abounds among Disney+ subscribers, both at the news regarding password sharing and at the impending price increase that will hit all Disney streaming services on Oct. 12. But unless customers revolt via large-scale cancelation, Disney+ will be far from the last streamer to implement password-sharing rules, and historical data suggests that big wave of churn is unlikely to materialize.

TBD