Let the chaos begin…
Earlier this year, the streaming giant Netflix shocked fans when they announced they would be cracking down on password-sharing. Password sharing, which is when groups of friends and families share access to one mutual account, has been a popular method since streaming services began. By restricting this practice, Netflix would be removing many users from Netflix, therefore forcing them to create and pay for their own individual accounts.
Now, another dominant force in the world of streaming is planning to do the same thing.
The Age of Password Sharing Nears Its End
Following Netflix’s lucrative move to crack down on password sharing, Disney has announced plans to implement similar measures to eliminate password sharing on its streaming platform, Disney+. The decision comes as Disney desperately seeks to protect its profitability and ensure a fair subscriber agreement for all users.
Streaming has become the go-to method for consuming entertainment, and password sharing has become a widespread practice among subscribers. By sharing their login information with friends and family, users can access content on various devices without paying for multiple accounts. While this may seem like a cost-effective solution for users, it poses a significant challenge for streaming platforms like Disney+.
Netflix’s decision to eliminate password sharing comes as no surprise, considering its commitment to streaming profitability. It was estimated that in 2022, U.S. streaming services lost over $2.3 billion due to password sharing. Netflix alone reportedly lost approximately $791 million. This massive amount of money lost is enough to infuriate any streaming service, but it was Netflix who first took the plunge and enforced a crackdown on password-sharing.
While Netflix Gets Hate, They Also Recoup Money
Fans were understandably furious with this decision by Netflix, many going as far as to try and “cancel” the streaming service altogether. However, it seems that the decision ended up working out in the end, with Netflix gaining a huge influx of new subscribers.
NEW on the Antenna Blog: A first look at the impact of Netflix’s pw sharing crackdown. In the first 6 days since they implemented the new policy, Netflix has had the 4 single largest days of US user acquisition in the 4.5 yrs that Antenna has been measuring the streaming service. pic.twitter.com/rDYGxR43Qm
— Antenna (@AntennaData) June 9, 2023
Now, it seems that Disney is trying to replicate such success. Disney Plus subscribers in Canada have just been given a month to create their own accounts before Disney will begin to shut down password-sharing on the platform. The message was shared to impacted users via and email earlier this week.
While fans may be frustrated with this move, it does not come as a surprise to those who have been following this years quarterly earnings reports. Disney+ has continued to be a thorn in Disney’s side, and it is clear that the company is desperate to make the platform more lucrative.
At this time, Disney has not announced any plans on if Disney will begin to crack down on American Disney+ subscribers. Only time will be able to tell just how much this will impact those who share their Disney Plus passwords.