Disney, Hulu and ESPN+ is banning password sharing
Disney is set to clamp down on password sharing for its streaming services, following the footsteps of competitor Netflix. In an email sent to Hulu subscribers, the company announced that it would implement restrictions on sharing accounts outside of the household starting March 14.
The user agreements for Hulu, Disney+, and ESPN+ explicitly prohibit users from impersonating others by using their username or password. The terms, last updated on January 25, state that users must not misrepresent their affiliation, use another person’s account information, or provide false details.
The agreements also mention that the company may analyze user accounts to ensure compliance with password-sharing rules. Violators could face account limitations or termination, as outlined in the user agreements.
Disney CEO Bob Iger hinted at this move in August, expressing the company’s intention to address password sharing in 2024. Iger emphasized the opportunity to grow the business by tackling this issue. More details on Disney’s plans may be revealed during Iger’s expected discussion on the fiscal first-quarter earnings call on February 7.
The updated user agreement terms align with Disney’s commitment to addressing password sharing, a strategy that proved successful for Netflix in attracting new subscribers. Netflix recently reported a record number of subscribers in the fourth quarter following a crackdown on password sharing, prompting “borrowers” to create their own subscriptions.