ISLAMABAD: In a move mirroring Netflix’s actions, Disney is set to tighten its policies on password sharing for its global streaming customers. The company plans to update its subscriber agreement later this year with new terms addressing sharing practices.
This marks a significant shift for Disney, which had previously allowed password sharing among friends and family members.
The decision to clamp down on password sharing stems from several factors. Firstly, the practice has become a major concern for streaming services, with estimates suggesting that Netflix alone loses billions of dollars annually due to this issue. Secondly, password sharing raises fairness concerns, as paying subscribers should be able to use their accounts without unauthorized access.
Disney Follows Other Platforms to Curtail Password Sharing
Disney is not the sole streaming service taking action against password sharing. Other platforms like Netflix, Hulu, and HBO Max have also implemented measures to curtail this practice in recent times, indicating a broader industry trend.
The crackdown on password sharing is likely to have implications for consumers. It may lead to increased subscription costs as streaming services look to offset losses incurred by unauthorized account usage. Disney has already announced plans to raise prices for its ad-free Disney Plus and Hulu subscriptions. Additionally, this move could make it harder for individuals to share their streaming accounts with friends and family, potentially prompting some users to cancel their subscriptions altogether.
