Disney’s Password Sharing Crackdown: A Model After Netflix?

Disney is taking a stricter stance on password sharing for its streaming service Disney+ in an effort to increase signups and revenue. This follows a similar move by Disney’s other streaming service, Hulu, which began limiting account sharing outside of households in March. The terms of service for Disney’s streaming services already prohibit customers from sharing their login information, but the policy hasn’t been heavily enforced until now.

Disney+ will start enforcing stricter rules on password sharing in June in some countries, with more widespread enforcement beginning in September. The decision to enforce password sharing rules more strictly had been anticipated for some time. CEO Bob Iger had previously mentioned on an earnings call that cracking down on password sharing was a priority for Disney and that it could help the company grow.

The move is seen as a model after Netflix, which has seen a significant increase in signups due to its own password sharing crackdown. Netflix’s revenue and number of new accounts saw a dramatic increase after they began more strictly enforcing their policies. Disney hopes to achieve similar results with its crackdown on password sharing.

While Disney+ has continued to lose money since its launch, the company is hopeful that cracking down on password sharing will help move the platform towards profitability. Iger expressed admiration for Netflix’s success in the streaming industry and hopes that Disney can achieve similar results. He also mentioned that Disney+ has taken steps to consolidate its streaming business, though the specifics of this consolidation were not provided.