Disney Will Start Its Password Sharing Crackdown in June
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We’ve known it was coming for a while, but it appears that Disney is now getting ready to turn the key on enforcing its password-sharing policies — and making users pay up if they want to keep sharing.
Disney’s move follows in the footsteps of Netflix, which began officially cracking down on password sharing last February when it rolled out new policies and “Extra Member” accounts in Canada and three other countries before bringing it to the US in May.
The move quickly paid off for the streaming giant, resulting in record new sign-ups as those who had previously been sharing someone else’s account were forced to pay up to avoid losing their daily fix of Netflix.
So, it’s no surprise that other big streamers quickly followed suit. After announcing its plans in August, Disney started rolling out the policies in Canada in September and then the US in February. Warner Bros. Discovery’s Max service also announced similar plans last month.
Unlike Netflix, Disney has been a bit vague about how this will all work. The new rules regarding password sharing came into effect for new subscribers on January 25 and for existing ones on March 14. They now state that subscriptions can only be used by a single “household” and clearly define that as “the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.” However, Disney doesn’t say how or when this will be enforced, nor does it offer any options for those who might want to share their account with extended family members.
When Netflix closed the door on password sharing, it offered “Extra Member” accounts from the outset, allowing subscribers to add up to two additional accounts to their plan for $7.99/month each. Those fees are charged to the primary account holder, which means most folks won’t likely be signing up acquaintances or co-workers, but it’s a good way to legitimately share your account with elderly parents or kids away at college.
Although there were hints from the beginning that Disney would offer something similar — the new terms of service had an “unless otherwise permitted by your service tier clause” — it seems that the House of Mouse had yet to iron out all the details.
As a result, even though the new terms came into effect for all US Disney+ subscribers on March 14, the company has yet to drop the ban hammer on anyone. Instead, Disney CFO Hugh Johnston told investors in February that enforcement would begin this summer. Johnston added that when it does, those doing unpaid sharing will get “opportunities to allow their borrowers to start new subscriptions” and eventually “allow further individuals to access their account from outside the household […] for an additional fee.”
Now, we’re getting a more specific timeline. In an interview with CNBC, Disney CEO Bob Iger said the company will launch its “first real foray into password sharing” in June, although it might not hit the US immediately.
In June, we’ll be launching our first real foray into password sharing. Just a few countries in a few markets, but then it will grow significantly with a full rollout in September.Disney CEO Bob Iger
Instead, Iger says Disney plans to start rolling out the policies in “just a few countries in a few markets.” Although he didn’t specify which ones those would be, most streaming companies typically try new policies in smaller markets like Canada before implementing them to the larger subscriber bases in the US.
Disney still hasn’t provided any insight into how its version of “extra member accounts” will work or even when they will arrive. Johnston’s comments in February strongly implied that Disney might try to force as many “borrowers” as possible to set up their own independent accounts first before it offers a more affordable option.
The accounts that we think are doing unpaid sharing right now will get communication this summer, and we’ll give them opportunities to allow their borrowers to start new subscriptions. Then, later this year, we’ll actually also have account holders who want to allow further individuals to access their account from outside the household; they’ll be able to access the account, but they’ll be able to do so for an additional fee.Disney CFO Hugh Johnston
The new policies also extend beyond Disney+ to other Disney-owned services, such as Hulu. Disney launched a combined Disney Plus and Hulu app last month, hoping to encourage more people to opt for the bundled services. As David Pierce recently pointed out at The Verge, Disney is putting in a lot of work to unify its services so it can more effectively track viewing habits across all of its properties, from Disney+ to ESPN and even your cable box.
