Disney+, Hulu and ESPN+ to Implement Stricter Password Sharing Policies, Following Netflix’s Lead
In a move mirroring its streaming competitor Netflix, Disney has announced that it will crack down on password sharing across its streaming services, including Disney+, Hulu, and ESPN+. Subscribers received an email from Hulu on Wednesday, stating that the company would be imposing limitations on account sharing outside of the household, effective March 14.
The updated user agreements for Hulu, Disney+, and ESPN+, all of which were last revised on January 25, explicitly prohibit users from impersonating others by using their usernames or passwords. The agreements state, “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.”
While it remains unclear when the specific language regarding password sharing was added to the agreements for Disney+ and ESPN+, the terms allow the company to analyze user accounts to ensure compliance. Violators may face account limitations or termination, according to the user agreements.
Disney CEO Bob Iger hinted at the company’s intention to address password sharing in 2024 during an August announcement. On Disney’s fiscal third-quarter earnings call, Iger stated, “We certainly have established this as a real priority. We actually think that there’s an opportunity here to help us grow our business.”
Disney is expected to provide further details on its plans to address password sharing during its fiscal first-quarter earnings call on February 7, led by CEO Bob Iger. The updated user agreement terms follow a successful password-sharing crackdown by Netflix, which resulted in a surge in new subscribers as individuals previously sharing passwords were prompted to create their own subscriptions.
Notably, Netflix recently reported a record number of subscribers in the fourth quarter, showcasing the effectiveness of its efforts to curb password-sharing practices.
