Disney follows Netflix – puts an end to password sharing

Now Disney is following Netflix's lead and will stop sharing passwords. Netflix has been trying to stop sharing for years, and has finally come up with a method that has worked so far, luring millions of former participants to get their own subscriptions. It's no surprise that Disney also wants to try its luck.

Both Disney Plus and Hulu have updated their user agreements, and it's now a breach of contract to share an account with people outside your household. Hulu notified customers via email and says the new rules will apply immediately to new customers. For existing customers, the rules apply as of March 14, a Disney representative confirms Ars Technica.

In the new agreements, each of Disney's streaming services grants itself the right to analyze traffic from devices logged into the account to determine whether the agreement is being followed. An Ars Technica representative who spoke to him declined to say what that means. Netflix uses IP addresses, unique device identifiers, and activities, but not location data.

Bob Iger, Disney CEO who retired in 2020 but returned in 2022, cited password sharing as an issue in a quarterly report issued in August 2023. Disney Plus was released in 2019, but in November 2023, the New York Times reported So far, Disney has raked in $11 billion on the streaming service.