Disney’s Crackdown of Password Sharing Could Increase Subscribers

Just like Netflix, Disney+ subscribers can no longer share passwords with anyone living outside their household. Disney notified customers of the updated “paid sharing” policy in a recent announcement.

Over the past year, Disney has been quietly testing the password-sharing rule but did not enforce it. Now, however, it is official, and subscribers have been warned.  

“Your Disney+ subscription is meant to be used within your household, which is a collection of devices associated with your primary personal residence that are used by the individuals who reside there,” Disney told customers.

Disney went on to note that friends and family outside the household will need to get their own subscriptions. Known as “paid sharing,” current subscribers can also add an extra member outside the household for an additional fee.

Disney+ customers can still watch TV shows and movies on supported devices even if they are not at home. Essentially, when the Disney+ app detects that a device is on a different Wi-Fi network, it will require the user to select “I’m away from home.” The option will trigger an email to the account on file with a one-time passcode to access.

Disney’s other streaming services, Hulu and ESPN+, will likely also crack down on password sharing in the coming months. User agreements for the platforms already contain language that bans users from sharing usernames and passwords, but they have yet to be definitively enforced.

Why Is Disney Cracking Down on Password Sharing?

After Netflix rolled out its prohibition of password sharing, subscription rates actually increased. According to CNN, 100,000 new subscribers signed up immediately after the streaming service began enforcing the no-sharing rule.

The Netflix figures could have influenced Disney’s decision. The entertainment giant has been struggling for years to make its streaming services profitable. After losing money for a number of years, Disney’s direct-to-consumer segment finally showed a profit in the third quarter of 2024.

Also potentially helping Disney’s bottom line, previously announced higher subscription prices will take effect next month. Starting Oct. 17, Disney+ basic will go from $7.99 a month to $9.99. The no-ad option, Disney+ premium, will go to $15.99 a month, also a $2 increase over the current rate.

Subscribers who want to add an extra member outside the household will be charged an additional $6.99 per month for Disney+ basic plans. Premium service subscribers will need to pay $9.99 a month more. Neither Disney bundle subscribers nor customers billed through a third party will be able to add an extra member.

While many subscribers will likely threaten a boycott of the service due to increased rates and a crackdown of password sharing, Disney probably anticipates some subscriber growth, nonetheless. Should the plan work, it could end years of disappointment in Disney’s bottom line.