Disney Joins Netflix In Password Crackdown, How Bad Will It Get?
Despite the public outcry Netflix faced earlier this year when the company began its massive crackdown on password sharing, the move turned out to be an enormous financial success for the streamer. After seeing the success of this trend with Netflix, it seems that Disney has decided to follow suit, with a recent report from The Verge stating that Disney+ has begun rolling out measures to stifle password sharing in Canada. Canadian Disney+ subscribers reportedly received an email in recent days that specifically details restrictions being placed on shared accounts.
Disney+ is following in the footsteps of Netflix by rolling out anti-password sharing measures in Canada.
This news is surely upsetting for the millions of Disney+ subscribers in the frigid north who have been cutting costs amid the latest reports of global inflation by sharing streaming services with friends, loved ones, and anyone who promises not to spoil new episodes of Ahsoka before the account-holder has seen them.
The email from the entertainment giant states that users may not share their subscription outside of their household, raising a number of questions from subscribers about the exact guidelines for streaming on the go.
Furthermore, Disney has updated their subscriber agreement in Canada to reflect account sharing as an offense worthy of contract determination, meaning the company can effectively shut your account down remotely if it detects you giving out your password to friends outside your home.
Just last month, Disney held an earnings call in which Bob Iger stated password sharing was a significant problem, meaning the film and entertainment studio likely plans to bring these measures to the United States and beyond in the near future.
While this shift in policy is shocking in its bold nature, it doesn’t come as much of a surprise as a business move from Disney, especially after the numbers reflected by Netflix’s decision to crack down on password sharing.
Just last month, Disney held an earnings call in which Bob Iger stated password sharing was a significant problem, meaning the film and entertainment studio likely plans to bring these measures to the United States and beyond in the near future. Iger also touted his team’s ability to detect password sharing using the latest technology in account monitoring.
Of course, Netflix tested various forms of restrictions for over a year before beginning a true crackdown on password sharing within the United States, with the streamer constantly threatening to split up multi-family accounts for months before actually committing to it.
The speed with which Disney continues this crackdown depends on how much financial success they see from early efforts within the Canadian market.
Still, this news is unnerving because Netflix has successfully shown that cracking down on password sharing can result in a massive uptick in new subscribers, proving that streaming fans would in fact pay for the service themselves if forced off of a shared account.
This could instill a sense of urgency within Disney to expedite the process, taking their crackdown global much faster than the glacial exercise displayed by Netflix in the past. Disney+ has already begun to offer a new service within the Canadian market at a cheaper, ad-supported tier.
The speed with which Disney continues this crackdown depends on how much financial success they see from early efforts within the Canadian market. For now, all Disney+ subscribers can do is watch and wait. Either way, the days of sharing passwords between entire groups of friends will soon go the way of the VCR.
