Netflix effect? Disney Plus begins cracking down on password sharing

Disney Plus has already started cracking down on password sharing in Canada, where it is charging additional fee for every user outside of the household.

Edited By: Shubham Verma

Published: Sep 28, 2023, 05:23 PM IST

Netflix effect? Disney Plus begins cracking down on password sharing

Highlights

  • Disney Plus has starting cracking down on password sharing in Canada.
  • Every user outside of a household will be required to pay additional fee.
  • Netflix set a precedent by curbing password sharing in many markets.

Following Netflix, Disney+ will start restricting its users in Canada from sharing their accounts with people outside their households starting November 1. The Walt Disney-owned streaming company notified subscribers of the change via email, which Disney CEO Bob Iger hinted at during an earnings call in August, reports Engadget. Disney in the updated Subscriber Agreement, specified that a household includes only "the collection of devices associated with your primary personal residence" and used by the people who live there.

The agreement also suggested that Disney+ will introduce new fee options for users who want to add outside members to their accounts, noting that the upcoming rule applies to everyone "unless otherwise permitted by your Service Tier". This is similar to Netflix's strategy, which involves curbs on password sharing and additional fees for users outside of a household. The company is following in the footsteps of Netflix, which officially began cracking down on password sharing in the US and other countries in May. Netflix has set a precedent with its $8 (roughly Rs 665) per extra person, per month charges.

The details of the company's plans have not been released yet. We also do not know whether or not Disney+ will expand password-sharing curbs to countries such as India where it operates a combined streaming service called Disney+ Hotstar.

On November 1, Disney+ subscribers in Canada and parts of Europe will gain access to the streaming service's less expensive ad-supported tier, which has been available in the US since 2022, the report said.

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Last week, Amazon announced that it will introduce 'limited advertisements' to its Prime Video streaming service in 2024 as it aims to put more cash into creating TV shows and films. In addition, the company said it will roll out the "ad-free" subscription tier for an extra $2.99 per month for Prime members in the US -- a similar move which was taken by competitors such as Disney+ and Netflix.

-- Written with inputs from IANS

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Author Name | Shubham Verma

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