Official: Disney+, ESPN+ Update User Agreements in the United States to Restrict Password Sharing, Joining Hulu

Disney’s password-sharing restrictions are continuing to trickle down to subscribers of its streaming services. First, it was Disney+ customers in Canada who saw rules against password sharing implemented in September of 2023; then earlier this week, Hulu subscribers in the United States began receiving notice that they too would be subject to new guidelines for not sharing their accounts. Now, rules against sharing passwords are officially in effect for American subscribers of both Disney+ and ESPN+.

• Rules against sharing passwords will take effect on March 14 for current Disney+ and ESPN+ subscribers in the United States.
• The updated user agreement for those two streamers is identical to the new agreement Hulu notified customers of earlier this week.
• Delays in implementing password-sharing rules in the United States were likely in the name of testing restrictions in Canada first.

What are the Details of Disney+, ESPN+ Password-Sharing Restrictions?

If you got and read the notification from Hulu about its updated account sharing rules this week, you already know what’s in the new subscriber agreements from Disney+ and ESPN+. The section pertaining to the sharing of accounts is identical for all three streamers; Disney+ and ESPN+ released their updated user agreement jointly.

The agreement specifies that subscribers are not allowed to share their Disney+ 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.” New subscribers will see the rules take effect as soon as they sign up, but existing subscribers will not see them officially apply until March 14.

As with Hulu, Disney+ and ESPN+ customers run the risk of having their access to their subscriptions canceled or their access limited if they violate the new rules. The Streamable doesn’t anticipate Disney will start booting people from its streamers on their first violation, but it obviously wants subscribers to take the matter seriously.

Why Did It Take This Long for Disney to Finish Enacting Rules Against Password Sharing in the US?

Disney clearly followed Netflix’s example when laying down rules against password sharing. Like Disney, Netflix introduced rules against account sharing in countries other than the United States before making them official domestically, and it informed customers months ahead of time that the new rules were coming. Netflix began testing restrictions in Latin American countries, in 2022, whereas Disney started its password-sharing crackdown in Canada last September.

The reason streamers roll out account-sharing rules so slowly is that they have to test the reaction among audiences to ensure that a huge number of paid subscribers won’t leave when the rules are implemented. Since Canada and the United States are viewed as markets with similar customer behavior, providers often use the former country as a testbed for new rules before enacting them for U.S. audiences.

When Hulu handed down its new subscriber agreement this week, The Streamable warned that such rules would not be far behind for Disney+. That prediction has been borne out, as now every service in the Disney Bundle has clear rules against the sharing of accounts.