Disney's Shocking Password-Sharing Crackdown: What You Need to Know!

Disney's Shocking Password-Sharing Crackdown: What You Need to Know!

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Disney's plans for cracking down on password-sharing for Disney Plus are becoming clearer. CEO Bob Iger, in an interview with CNBC, revealed that the company will start its "first real foray into password sharing" in June. 

Initially, this crackdown will be limited to "just a few countries and a few markets," but it will expand significantly with a full rollout in September.

During Disney's first-quarter earnings call in February, the company announced its intention to enforce new account-sharing policies by introducing a fee for Disney Plus streaming customers later this year. This decision follows a trend initiated by Netflix and came after Disney updated its subscriber agreements for Disney Plus, Hulu, and ESPN Plus.

CFO Hugh Johnston, speaking during the earnings call, stated, "Beginning this summer, Disney Plus accounts suspected of improper sharing will be presented with new capabilities to allow their borrowers to start their own subscriptions. Later this calendar year, account holders who want to allow access to individuals from outside their household will be able to add them to their accounts for an additional fee."

Subscribers were notified of these changes via email, detailing updates to user agreements for each platform. 

According to Disney's terms, subscribers may not share their accounts with anyone outside their primary household residence, unless permitted for their tier. 

The agreement also allows the company to review usage habits and choose to "limit or terminate access" to enforce compliance. The policy took effect on Jan. 25 for new users and on March 14 for existing customers.

Iger initially announced plans to address account sharing in August, highlighting it as a priority for 2024 for the global subscriber base. 

He noted that this move would support the company's efforts to increase monetization in the new year. Disney first implemented its crackdown in Canada and later unveiled new rules in November.

In contrast, Netflix charges $8 for each "extra member" subaccount, with restrictions on the number of people that can be added to a Premium or Standard subscription. 

While Netflix faced initial backlash over this change, it ultimately helped increase its subscriber numbers as some former password borrowers opted to sign up for their own accounts, including the $7 ad-based plan.

Disney is also making changes to its streaming business in other areas. The company recently fully launched its Hulu on Disney Plus single-app option and announced a joint venture with Warner Bros. Discovery and Fox in February.

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