The Walt Disney Corporation’s password sharing crackdown for its streaming service, Disney+, is set to ramp up this year.
Here’s what we know so far about the media giant’s plan to squash password sharing.
What’s Disney’s timeline for viewers to stop sharing passwords?
This month, Disney sent out emails to customers with a copy of its updated subscriber agreement. The changes went into effect on January 25 for new users, but terms won’t go into effect for existing subscribers until March 14 “unless you acknowledge an in-app notice of these changes earlier.”
During its fourth quarter earnings call this month, Disney’s Chief Financial Officer Hugh Johnson said the company will send out reminders regarding the password policy to subscribers this summer. More details are expected to be revealed then.
What does the updated subscriber agreement say about password sharing?
In the Account Sharing section under User Eligibility and Registration in the updated agreement, Disney states that users “may not share your subscription outside of your household.”
How will Disney enforce its anti-password sharing policy?
Exact measures are unclear at this time, but the new subscriber agreement says Disney might start monitoring accounts.
“We may … analyze the use of your account to determine compliance with this agreement,” Disney continues. “If we determine … that you have violated this agreement, we may limit or terminate your access to [Disney+].”
It’s unclear how Disney will “analyze” accounts, but it’s possible the company may take a page from Netflix’s password crackdown and issue a warning — and an invite to make a new account — based on location.
There may also be a third option — add the non-household member to your account for an extra, yet-to-be-determined fee.
Why is Disney cracking down on password sharing?
Password sharing has always been against the rules, but the seemingly harmless practice has been largely overlooked. After a financially tumultuous last three years, streaming services can literally no longer afford to be so lax.
After launching Disney+ to much fanfare in 2019, the media giant’s streaming business posted an operating loss of $512 million for the third quarter of 2023 due in part to slow subscriber growth and a lackluster response to programming.
The password sharing crackdown is part of Disney’s aggressive action — layoffs, price hikes, budget cuts, and merging with Hulu — over the last year to right its financial ship. While Disney set a September deadline to achieve profitability, analysts forecast Disney could start making money on its streamer this quarter.
The plan’s implementation is taking a more solid shape, but CEO Bob Iger — likely referring to finances — said the initiative won’t make a “meaningful impact until 2025.”
How much does Disney+ cost?
If you want to make a new account, it’s easy to sign up on the streamer’s website.
You can choose from these plans:
- Basic Disney+ with ads: $7.99 a month
- Premium Disney+ without ads: $13.99 a month
- Duo Basic: Hulu and Disney+ with ads: $9.99 a month
- Duo Premium: Hulu and Disney+ without ads: $19.99 a month
- Trio Basic: Hulu, Disney+, and ESPN+ with ads: $14.99 a month
- Trio Premium: Hulu, Disney+, and ESPN+ without ads: $24.99 a month
Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.