With nearly a quarter of a billion paid subscribers, Netflix remains the largest video streaming service on the market. The gap between itself and the rest of the field, while closer than ever, still remains wide on the whole. So, when Netflix does something, you’d best bet everyone else will pay attention.
Case in point, password-sharing, specifically, cracking down on the practice.
With the move paying dividends for Netflix, the House of Mouse is following suit by imposing limits on how its users can share accounts between each other. As reported by The Verge, Disney+ users in Canada received an email outlining a new subscriber agreement that includes a new agreement detailing an updated terms section specifically dedicated to account sharing.
In an attempt to curb attempts, the email notes that, beginning November 1, subscribers in Canada can no longer share accounts with users outside their “household.”
Simply put, Disney+ now plans to track where you sign in from using your accounts to make sure that all devices live in the same household.
However, there’s a caveat – the new agreement confirms that certain “service tiers” are exempted.
We’re expecting to find out more about this as the year comes to a close, but it does imply two things: Disney is looking to restrict access to users living outside a subscriber’s main address and it will likely let users pay extra to include others.
After adding an ad-supported tier, Disney+ might restructure its subscribers to add a new more expensive one that lets you log in at multiplayer locations, but that is purely speculation at this point.
What’s interesting is that Disney is testing this out in Canada already. Netflix usually experiments in smaller territories to minimize the potential backlash. By jumping straight into one of its largest territories, Disney might have just telegraphed the urgency of this move.
This latest update from Disney+ comes shortly after the current CEO, Bob Iger, revealed in a recent earnings call that it was “actively exploring” ways to solve its problem where a “significant” amount of users often share passwords outside of the same household.
If it’s any consolation, the expected increase in revenue from tackling password sharing should give leading streaming platforms like Disney+ and Netflix a reason to pause talks of a potential price increase. Or, in Disney+’s case, another price hike following its most recent increase that will go into effect on October 12.
Speaking of Disney, the company is reportedly looking at increasing its investment in the gaming space despite its lack of commercial success outside of Insomniac Games’ Marvel’s Spider-Man series. It’s theorized that That’s No Moon may be working on a Marvel or Star Wars game.
