Disney+ is all set to intensify its approach towards curbing password sharing among its users. Come November 1, Canada will witness the debut of this restriction, as revealed by emails received by Canadian Disney+ subscribers.
This move, mirroring a similar initiative by Netflix, demonstrates Disney’s resolution to secure its streaming service revenues. The company has revamped its terms of service, emphasizing that, unless specified otherwise by the service tier, subscriptions shouldn’t extend beyond one’s household. A “household” here refers to a suite of devices used within a person’s primary residence by its occupants.
Disney’s CEO, Bob Iger, had previously hinted in August about introducing strategies to counter password sharing by 2024. However, the initial implementation in Canada indicates a faster rollout than anticipated.
A substantial $512 million loss for Disney’s streaming arm in the third fiscal quarter of 2023 provides context to this move. Amid endeavors to trim streaming expenses, Disney has also hiked the prices of its ad-free Disney+ and Hulu subscriptions. The former is now available at $13.99 monthly in the U.S., while the latter stands at $17.99 per month.
While Canada is the first domino to fall, it is anticipated that the U.S. and other nations will soon follow suit.
Taking cues from Netflix, which ceased password sharing across different households via IP and location restrictions and subsequently witnessed a surge in new subscriptions, it’s evident why other platforms are keen to replicate the strategy.