Everything We Know About Disney’s Password-Sharing Crackdown
As Disney gets closer and closer to enforcing restrictions on password-sharing, we’ll lay out all the information the company has shared on its plans thus far.
For a company that is best known for creating magical experiences for its customers, Disney is taking a decidedly un-magical approach to achieving streaming profitability. The company has made no secret of its intention to begin cracking down on password-sharing in 2024, and those efforts will truly begin in September. I’ll lay out everything we at The Streamable know about Disney’s intentions thus far, in order to ensure customers are as prepared as possible when the time comes.
Key Details:
- Disney CEO Bob Iger re-confirmed on Wednesday that password-sharing restrictions would be enforced starting next month.
- The company first updated its terms of service to make account sharing a violation in February.
- Disney is likely to allow customers to pay extra to continue allowing family members to keep watching.
When Will Disney Begin Enforcing Password-Sharing Rules?
The new rules against password sharing on Disney+, Hulu, and ESPN+ will be enforced starting in September, as company CEO Bob Iger reiterated during a conference call on Wednesday to discuss Disney’s quarterly earnings. He did not give a specific day that the rules would begin to be enforced in the United States but did suggest he’s confident they won’t lead to a big cancellation reaction by customers.
“We started our password-sharing initiative in June. That kicks in, in earnest in September,” Iger said. “By the way, we’ve had no backlash at all to the notifications that have gone out and to the work that we’ve already been doing.”
Is Password Sharing Already Against Disney’s Rules?
Technically, yes. In February, Disney updated the terms of service for its three streaming platforms to make sharing passwords a violation of its user agreement. It simply hasn’t been enforcing those rules in the United States yet, but that will change next month.
What Are Disney’s Rules Against Password Sharing?
According to the user agreement, subscribers are not allowed to share their Disney+, Hulu, or ESPN+ accounts outside their “household,” which Disney defines as “the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.”
What Happens to Customers Who Violate Disney’s Password-Sharing Rules?
Viewers could find their account access limited if they try to break Disney’s password-sharing rules, and the company has warned that violators could have their accounts canceled. It’s likely that a step that drastic won’t be taken unless customers prove themselves to be repeat offenders, but Disney clearly wants viewers to take the rules seriously.
How Will Disney Know if You’re Violating Password-Sharing Restrictions?
Disney will likely make use of your IP address and other location-based data to identify where the devices associated with the payer’s account are to determine where your “household” is. However, no technical details on how the company plans to enforce password-sharing rules have been given by Disney thus far.
Why is Disney Cracking Down on Password Sharing?
Like other companies, Disney is trying to transform its streaming arm into a profitable business. The margins in streaming are razor-thin, and companies that own a big portfolio of linear TV channels like Disney does have to try and make their streamers pay more as their TV networks continue to lose viewers. That’s why the company announced its third price increase in three years for its three streaming platforms, and why it wants to stop viewers from sharing their accounts.
Are Other Streamers Also Restricting the Ability to Share Accounts?
They sure are. Netflix was the first to roll out its password-sharing rules, notifying American customers in May 2023 that it was limiting their ability to share accounts. That policy proved highly successful, as Netflix saw few customers cancel and a large number of new subscribers after enacting the policy.
That success set off a trend, and Disney was soon to follow with an announcement that restrictions on account sharing would begin in 2024. Warner Bros. Discovery is also preparing to crack down on password sharing, and will begin doing so toward the end of this year.
Will Disney Allow Customers to Pay Extra Add a Member Outside Their Household?
Early indications from Disney were that it did intend to allow customers to pay extra to allow someone outside their household to watch their Disney+ account. However, there have been no additional details on a paid sharing initiative from Disney in recent months. Keep checking with The Streamable for more information in this regard.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”