Hulu Begins Limiting Password Sharing for New Customers; Existing Subscribers to Be Impacted Next Month

Netflix was the first streamer to implement measures intended to limit password sharing, but it was apparent immediately that it wouldn’t be the last. Last summer, Disney CEO Bob Iger indicated that his company’s streamers would start to do likewise in 2024, and now Hulu has begun implementing rules against password sharing for new customers and will do so for current subscribers beginning in March.

• Existing Hulu subscribers will see password-sharing rules take effect on March 14.
• New customers are subject to those rules immediately.
• Disney+ is likely to be not far behind Hulu in rolling out restrictions on account sharing.

What Are the Details of Hulu’s New Account Sharing Rules?

New customers in the United States will be subject to Hulu’s updated subscriber agreement banning password sharing immediately. A notice sent to existing customers informed them that the overhauled agreement would be in effect for them on March 14, though subscribers who acknowledge an in-app notification about the update will then see the rules take hold immediately.

Unlike Netflix, which detailed how it would use IP addresses, device IDs, and account activity to determine whether a subscriber was in their household or not, Hulu’s updated subscriber agreement is light on details for exactly how it will determine whether the person using a given Hulu account is the person paying for that account.

“Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household,” reads Hulu’s new user agreement. “‘Household’ means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.”

The agreement does make clear that Hulu has the authority to check on whether you’re sharing your account at any time, and that violators of these rules risk having their access to Hulu limited or terminated altogether. That sounds quite harsh, but after having observed Netflix’s efforts to shut down password sharing — which are mostly limited to warnings and prompts for sharers to sign up for their own accounts — in The Streamable’s opinion, Hulu is unlikely to boot any serious amount of subscribers for sharing their accounts. More likely this tough language is meant to enforce the fact that Hulu wants its customers to take the new rules seriously.

When is Disney+ Introducing Password-Sharing Rules in the United States?

There was no accompanying announcement that Disney+ was also implementing new guidelines to prevent account sharing from Disney, but subscribers should expect it soon nonetheless. Iger doubled down on his promise that such rules were coming this year in November, and given that Disney+ has 100 million more subscribers worldwide than Hulu does, Disney would be leaving money on the table by not enacting password-sharing rules on that streamer as well. So, it would stand to reason that Disney is rolling out these measures on Hulu to work out the process before implementing them on the larger Disney+ subscriber base.

For customers, this is another disappointing sign that streaming platforms are prioritizing profits over functionality. But Iger is feeling the pressure to improve Disney’s bottom line these days; activist investor Nelson Peltz has launched another proxy fight because of his dissatisfaction with Iger’s leadership, and is trying to gain seats on Disney’s board in order to force Iger to take his suggestions.

Showing current board members that he can narrow losses and turn Disney’s streamers profitable by the end of 2024 would be a good way for Iger to vindicate his leadership decisions, and Disney executives have no doubt taken note of the fact that password-sharing rules from Netflix did not lead to a huge exodus of subscribers; in fact, Netflix saw record sign-up days after rolling out its restrictions on sharing accounts.

If you’re a Disney+ subscriber, keep an eye out for a similar notice to the one Hulu subscribers have been getting in recent days. Hulu’s account-sharing rules are rolling out in the United States as of March 14 for current subscribers, and it’s likely Disney+ won’t be too far behind.