Once happy to turn a blind eye to password sharing, streaming giants are now cracking down on freeloaders to recoup the billions spent on replacing cable TV with on-demand entertainment.
Netflix kicked things off by jacking up subscription prices and aggressively tackling account sharing. The gamble paid off spectacularly, boosting subscriber numbers and leaving competitors scrambling to replicate its success.
Enter Disney Plus, which is hell-bent on stopping you from mooching its service from friends and family. After announcing a ban on password sharing in select overseas markets last September, the company is ramping up its efforts in more countries.
Disney CEO Bob Iger said the new policy would “begin in earnest” in September. His comments came in the firm’s earnings call on Wednesday, August 8.
Based on the company’s prior statements, the move will see it emulating the tactics of its rival Netflix, which has cast a wide net to catch rule-breakers.
Last year, Netflix began tying its service to “households,” meaning anyone outside of a primary address was barred from streaming (apart from when travelling).
It defines a 'household' as devices on the same internet connection, with IP addresses, device IDs, and viewing habits used to determine this.
If a device is flagged as being outside the household, users face a stark choice: pay for a new subscription or cough up extra cash to be added as an extra member.
Disney Plus has already updated its terms and conditions in the UK to state that it will monitor how customers use their accounts and limit or terminate access for those who violate the rules.
Disney’s customer support section says: “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.”
Disney has also indicated plans to allow account holders to add users outside their main household for an additional fee. The exact details have not been revealed.
Iger’s comments follow Disney Plus’ introduction of a price hike in the US, less than a year after it did the same in the UK. The changes helped its combined streaming business (including Hulu and ESPN+ in its native US) turn a quarterly profit for the first time — $47 million (£37m).
Disney is riding high on the back-to-back success of its latest blockbusters, Inside Out 2 and Deadpool and Wolverine, which will soon be headed to Disney Plus.
Looking ahead, the company has a slate of sequels, remakes, and CGI reboots waiting in the wings. Iger mentioned on the earnings call: Moana, Mufasa, Snow White, Marvel’s Thunderbolts and Fantastic Four, more Avatar films, a Mandalorian movie, and another Toy Story.
