In wake of Netflix success, Hulu, ESPN+ and Disney+ to crack down on password sharing
The Walt Disney Company, which owns Hulu and ESPN+, announced this week it will further efforts to crack down on password sharing in an effort to be more profitable.
In an email sent to subscribers Wednesday, Hulu said it plans to add “limitations on sharing your account outside of your household.” The updates will begin March 14, 2024, Hulu said.
Hulu noted it will analyze account use and holds the right to suspend or terminate any account that violates updated terms on password sharing. In March, passwords will no longer be freely shared outside households.
It is understood the same terms regarding password sharing apply to Hulu, Disney+ and ESPN+.
“You agree not to impersonate or misrepresent your affiliation with any person or entity, including using another person’s username, password or other account information, or another person’s name or likeness, or provide false details for a parent or guardian,” the updated agreement terms for Hulu, Disney+ and ESPN+ say, per CNN.
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The announcement comes on the heels of Netflix’s success cracking down on password sharing. Mid-2023, Netflix officially put an end to password sharing.
Despite threats from subscribers to “#CancelNetflix,” the streaming platform saw a boom in subscriptions. The streaming platform currently boasts roughly 260 million subscribers worldwide — up by more than 13 million in the last quarter, reports Statista.
“We believe we’ve successfully addressed account sharing, ensuring that when people enjoy Netflix they pay for the service too,” Netflix wrote in a recent letter to shareholders, per CNN.
Netflix subscriptions dwarf the number of subscribers to Hulu. The streaming platform has about 48.5 million subscribers, per Statista. Disney believes making similar changes to squash password sharing could boost business.
Disney’s CEO, Bob Iger, hinted at upcoming changing in password-sharing policies during a third-quarter earnings call in August. Iger noted a “significant” amount of password sharing among subscribers and said the company would crackdown on it in 2024.
“Regarding password sharing, – we already have the technical capability to monitor much of this,” he said. “In calendar ‘24, we’re going to get at this issue...we certainly have established this as a real priority. And we actually think that there’s an opportunity here to help us grow our business.”
“We’re actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family.”
