Disney's password sharing crackdown begins
Streaming companies like Netflix or Disney are not happy about customers who share account access with non-household members. Some share to reduce the monthly subscription cost, others allow their collage-bound children to watch the service while away from home.
After Netflix tested the waters by restricting password sharing and cracking down on users who shared passwords, Disney announced that it was exploring these options as well.
The company has now gone from the planning to the execution phase. Like Netflix, Disney plans to test the waters in a single country. The selected country is Canada and Canadian subscribers to Disney+ are informed currently by the company about the planned changes.
The main change to the rules prohibits Disney+ users from sharing their account password with users outside of their household.
Disney defines household as the "primary personal residence" of the account owner.
Disney states: "You may not share your subscription outside of your household. "Household" means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein".
Starting November 1, 2023, Canadian subscribers to Disney+ may get in trouble if they share their account with others. Disney did not provide details on the enforcement or how it plans to distinguish between household and non-household use of the service. The most likely solution uses the IP address of viewers to determine their location. Netflix is using the IP address to determine the location of the viewer.
Disney is clear, however, that failing to comply with the updated sharing rules may result in the termination of the account or limits imposed on the account. Again, the company fails to provide specifics.
Canada is the testbed for Disney's password crackdown. The company will monitor subscriptions to eventually launch the restrictions in other regions. It is unknown if Disney plans to introduce add-on slots for subscribers to add another location officially. Netflix introduced this option for its paid plans.
Disney launched an ad-supported version of Disney+ recently, which is $3 cheaper in the United States than the ad-free plan.
Netflix saw an initial dip in subscribers in regions in which it launched the password sharing restrictions. The company saw an increase in subscriptions afterwards though.
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