Starting from November 1st, Disney Plus will be taking measures to curb password sharing among its subscribers in Canada. The company recently made this announcement via email, which was sent out to its Canadian user base. While the specifics of how Disney plans to enforce this policy remain somewhat vague, the message sent to subscribers clearly states that restrictions are being put in place to limit the sharing of account credentials beyond the household. The tone of the announcement conveys a stern message, emphasizing that subscriptions should not be shared beyond the confines of a single household.
The company has also introduced a new section dedicated to “account sharing” within the Canadian subscriber agreement. This section outlines Disney’s right to scrutinize the usage of individual accounts. Failure to comply with the agreement’s terms and conditions could result in the imposition of account limitations or, in more severe cases, account termination. This move indicates companies’s commitment to preserving the integrity of its subscription model and ensuring that users adhere to their terms of service.
Disney’s Response to Growing Concerns
Disney’s decision to clamp down on password sharing comes on the heels of its Q3 earnings call, during which CEO Bob Iger revealed that the company had been actively exploring solutions to address the issue of shared accounts. Iger pointed out that a significant number of individuals were currently sharing passwords across Disney’s suite of streaming services. He also mentioned that Disney possesses the technical capabilities required to monitor user sign-ins, making it clear that the company was prepared to take action to protect its content and revenue streams.
This initiative by Disney Plus aligns with a broader trend among streaming platforms. Netflix, one of Disney’s major competitors, has been testing password sharing restrictions for over a year in various regions. As of May 2023, Netflix began implementing stricter measures in the United States to combat password sharing. Netflix’s approach involves restricting access based on the user’s IP address, and they offer subscribers the option to add additional members to their accounts for an extra fee. In its Q2 earnings call, Netflix reported that this policy had driven more subscribers to its service, highlighting the potential financial benefits of curbing password sharing.
Access to Cheaper Ad-Supported Tier for Canadian Users
Amidst these developments, Canadian Disney Plus users have received some compensation. The streaming landscape is becoming increasingly competitive, and the cost of accessing multiple streaming services can add up. As a silver lining for Canadian subscribers, they now have access to a more affordable ad-supported subscription tier. This move by Disney may provide users with a budget-friendly alternative while the company seeks to protect its revenue by addressing password sharing.