Disney is joining the password crackdown trend

The name sign and facade of the Disney store in Oxford Street.

Yau Ming Low

Walt Disney (NYSE:DIS) is joining Netflix (NFLX) in cracking down on password sharing as the Mouse updated subscriber agreements for Hulu, Disney+ and ESPN+.

At Hulu, for existing subscribers, consumers will be limited to sharing within their households starting March 14. New subscribers were out of luck starting Jan. 25.

“We may, in our sole discretion, analyze the use of your account to determine compliance with this Agreement,” Disney said in the respective updates, adding users could see their accounts limited or terminated if shared outside the household.

Disney defines “household” as the “collection of devices associated with your primary personal residence that are used by the individuals who reside therein.”

The move comes as Disney looks to boost the profitability of its streaming business amid criticism from activist investor Trian Fund Management, even as losses for the segment narrowed last quarter.

“…[We] have additional opportunities for improvement in our streaming business that will come from implementing stronger standards around account sharing, although given the timing of our planned rollout, we don’t expect a meaningful impact until 2025,” Disney Chief Executive Bob Iger said on the company’s November earnings call.

The platforms made updates to their subscriber agreement as they catches up to rival Netflix, which implemented limitations last year and introduced ad-based subscriptions for those uninterested in forking over higher subscription fees.

Disney is the majority owner of Hulu, and is completing a deal to buy Comcast’s (CMCSA) 33% stake.

Harry Byrne

Related post