Disney is gearing up to implement its Password Restriction Policy for Canadian subscribers, effective November 1.
Disney+ is set to join Netflix in curbing the widespread practice of account password sharing among users outside their households. Starting November 1st, the streaming service is implementing stringent changes to its subscriber agreement for its Canadian customers.
Recent communications from Disney+ to its subscribers in Canada highlight the new policy changes. The email, first reported by The Verge, states, “We’re taking measures to restrict the sharing of your account or login details beyond your household.”
The Canadian subscriber agreement delves deeper into these changes, defining a ‘household’ as “the collection of devices tied to your primary personal residence utilized by its residents.”
However, what remains under wraps is how Disney intends to monitor and enforce these new restrictions. As per their updated agreement, Disney+ Hotstar is set to monitor the activities of subscribed users. Accounts found violating these policies could face limitations or, in severe cases, complete termination.
These policy modifications are not just a standalone move. They coincide with Disney’s plans to unveil its new ad-supported membership.
Notably, Netflix had initiated similar password-sharing restrictions earlier this year. Netflix’s policy states, “A Netflix account is meant for a single household, allowing its members to access the service from various locations, but the devices have to be connected to a primary household.”
Disney’s CEO, Bob Iger, had previously commented on the issue of password sharing, labeling it as “significant”. During August, he hinted at Disney’s ongoing efforts to devise new policies to limit subscribers from misusing the password-sharing functionality.
While the changes are currently slated for Canadian subscribers, there’s anticipation that Disney+ Hotstar will soon expand this policy to other regions, including India.
In light of these updates, subscribers are encouraged to review their usage and ensure compliance with the new terms to avoid potential disruptions in their streaming service.
In its Q2 2023 financial report, The Walt Disney Company showcased a commendable 13% revenue increase, amounting to $21,815 million, a rise from the $19,249 million in the prior year’s corresponding quarter. However, despite this monetary gain, Disney+ Hotstar saw a substantial decline in its subscriber base.
The count decreased by 4.6 million in Q2 FY23, landing at 52.9 million from 57.5 million at 2022’s close. A critical factor in this reduction was the loss of IPL rights to Jio, a setback that also saw a drop in Q1 FY23 from 61.3 million to 57.5 million.
Amid these challenges, Disney made a strategic move earlier in 2023 to cut costs, letting go of 7,000 employees aiming to save $5.5 billion.
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