Disney Plus Begins Crackdown on Password Sharing - What You Need to Know

Disney Plus Begins Crackdown on Password Sharing - What You Need to Know

Disney Plus follows Netflix in cracking down on password sharing. In Canada, this will begin on November 1.

The streaming service reportedly sent an email to Canadian subscribers on September 27 detailing new rules on password sharing, and according to The Verge, the email "restricts you from sharing your account and login information outside your household." It reportedly stated.

Last month, Disney CEO Bob Iger told investors that the company plans to implement something similar to the Netflix password-sharing crackdown it rolled out in late spring. Currently, for standard plans, Netflix charges $8 for each additional person outside the primary household who can use the service. Premium plan subscribers can add two additional people for free. Cheaper ad-supported tiers do not allow additional users.

It is unclear whether Disney Plus will have a fee structure like Netflix or simply not allow password sharing at all. A new section of the Canadian subscriber agreement states only that accounts may be suspended if rules are broken. Disney Plus, like Netflix, can monitor sign-ins and IP addresses.

"You may not share your subscription outside of your household unless otherwise authorized by the service tier. If we determine that you have violated this Agreement, we may restrict or terminate your access to the Service and/or take any other action permitted by this Agreement."

The password sharing crackdown is currently only in place in Canada, but is expected to be rolled out to the US, UK and other countries in the near future.

Cord cutting should be cheaper than cable, but streaming costs are rising. The industry has been in trouble for the last couple of years as subscriber growth has slowed and investors have demanded real returns; Netflix, Disney, Amazon, and other media companies are now implementing multiple ways to make their streaming services profitable.

Disney Plus will implement a price increase on October 12, raising its ad-free tier from $10.99 to $13.99 per month (annual plans will increase from $109.99 to $139.99). Sibling company Hulu is also raising its ad-free price from $14.99 to $17.99. Disney Plus also introduced an ad-supported tier late last year, and its next step is limiting account sharing.

Netflix's crackdown on password sharing has generated a lot of complaints, but it seems to be working; Netflix reports that the measure has brought in 6 million subscribers and increased revenue modestly.

Similarly, Disney is hoping to convert some of the account raiders into new subscribers. If new users choose the less expensive ad-supported plan, Disney will have two sources of revenue. But not so for those who wanted to stream "Loki" Season 2 on their parents' accounts.

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