Like Netflix, Disney+ is getting stronger by sharing account access information. Disney+’s subscriber agreement previously stated that users could not share account information, but the streaming service on Tuesday told its Canadian users that it was “imposing restrictions on account sharing.”
As a sign about MobileSyrup Wednesday, Disney+ sent an email to Canadian subscribers informing them of updates to the subscription agreement as of November 1, including the addition of an “account sharing” section. Although the rules seem to be launching with Canada first, it is likely that they will eventually roll out to other territories, such as the US. Netflix initially tested its password-sharing initiative in other countries before bringing it to the US.
MobileSyrup reported the update to Disney+’s Canadian deal as saying;
The Disney+ report goes on to say that it may opt out of analyzing subscriber accounts to ensure they are compliant. Handling may include cutting access to Disney+.
During Disney’s Q3 2023 earnings call in August, CEO Bob Iger pointed to “significant” password sharing among its streaming services, which also includes two-thirds ownership of Hulu, while declining to provide an exact number. At the time, Iger said Disney had the “technical ability” to monitor password sharing. He added that the company believed the move would result in some new subscribers but did not know how many. It’s possible that news-sharing rules could spread to Hulu, too.
As revealed in Disney’s Q3 2023 earnings report, Disney+ lost 11.7 million subscribers during the quarter, (mainly due to the loss of the rights to the Indian Premier League cricket tournament). Disney’s overall streaming operations losses were $512 million in that quarter, which was a decrease from $1.06 billion in Q3 2022.
Netflix has imposed its own password crackdown in the US in May. Now it charges users US $8 for every user outside the home through use information such as IP addresses, device IDs, and account activity. In August, Netflix tell that its focus on account sharing has helped drive revenue and new subscriptions more than cancellations. Unlike Disney+, Netflix’s new rules come after years of ignoring account sharing. Disney+ launched in November 2019, and Disney’s total streaming losses since then have exceeded $11 billion, The New York Times reported in August.
But as streaming services fight for more subscribers, viewers are challenged by streaming services cutting content budgets and raising prices. Like rivals, Disney is set to introduce a level of advertising support in an effort to increase subscribers, as well.
However, with Disney slashing the content through $3 billion In the next few years, you may have to do better than marketing ads and password monitoring to increase interest in your streaming services.