In an interview with CNBC last week, Disney CEO Bob Iger said that a Disney+ password-sharing crackdown will begin in June in the U.S. and in September in other countries.
Meanwhile, after streaming rival Netflix began its enforcement of password-sharing restrictions last spring, there was a jump in signups, CNN reported, and 100,000 new accounts signed up in the first two days, per data from Antenna.
“Netflix is the gold standard in streaming,” Iger said in the CNBC interview. “They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great.”
Original story from Feb. 1 below:
It’s the end of an era for Disney+ and Hulu password moochers, as Disney has announced it is going to begin cracking down on password-sharing among subscribers.
On Wednesday, Disney issued a letter to Hulu subscribers stating that it would begin “adding limitations” on “sharing your account outside of your household” starting March 14.
The company also quietly updated its Subscriber Agreement on January 25 to include information about account sharing.
Related: Disney Combining Hulu, Disney+ Streaming Platforms
“Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household,” the new policy states. “‘Household’ means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.”
If subscribers are found in violation of the rule, Hulu “may limit or terminate access” to the account.
Disney+ and ESPN+ have also updated their Subscriber Agreements to say the same, but there is no date on record of when the document was updated. Disney+ began banning users from password sharing outside of the same household in Canada last October.
Related: Disney+ Is Beginning to Crack Down on Password Sharing — in Canada
Disney took operational control and a majority stake in Hulu in 2019 when it acquired 21 Century Fox’s assets and began merging Hulu and Disney+ content in May 2023.
Disney gained full control of the streaming service in November 2023 when it bought out Comcast’s remaining 33% stake for an estimated $8.6 billion.
Disney CEO Bob Iger hinted that changes may come to Disney’s streaming service platforms during a Q3 2023 earnings call in August 2023 when the company announced price hikes for certain tiers of Disney+ and Hulu subscriptions.
“In calendar ’24, we’re going to get at this issue,” Iger said regarding subscribers and password sharing at the time. “We certainly have established this as a real priority. We actually think that there’s an opportunity here to help us grow our business.”
Streaming rival Netflix infamously barred password sharing outside of the same household in March 2023, much to the dismay of loyal subscribers.
The Walt Disney Co. was down just over 11.3% in a one-year period as of Thursday afternoon.