Disney+ Cracks Down on Password Sharing: Extra Costs for Extra Viewers

Disney has officially joined the ranks of streaming services tightening the reins on password sharing, announcing a new "paid sharing" program that will require subscribers to pay extra for friends and family outside their primary household to access their accounts. The move, which mirrors a similar initiative implemented by Netflix, aims to boost revenue by converting casual password borrowers into paying customers. However, the decision has been met with criticism from users who feel it adds yet another layer of expense to an already costly streaming landscape.

Under the new policy, Disney+ subscribers in the United States, Canada, Costa Rica, Guatemala, Europe, and Asia will need to add an "Extra Member" to their account for anyone living outside their address to continue enjoying the platform’s content. This means that sharing your username and password, a previously common practice, will no longer be a viable option for those residing in different households.

The cost of adding an Extra Member varies depending on the subscriber’s current plan. Those on the ad-supported Disney+ Basic tier will need to shell out an additional $7 per month on top of their existing $8 subscription. Subscribers with Disney+ Premium, who prefer an ad-free experience, will face a $9 monthly charge for each Extra Member added to their account, on top of the $14 they already pay.

Disney’s rationale behind the policy, as stated in their announcement, is to provide users with "ways to enjoy their Disney+ subscription along with a family member or friend." However, many view this as a thinly veiled attempt to squeeze more money out of subscribers, as it effectively penalizes those who have been sharing their accounts with loved ones.

The implications of this new policy extend beyond just the increased cost. Disney has updated its help page to outline the limitations of the Extra Member feature. Notably, Extra Members can only watch Disney+ on one device at a time, which may be inconvenient for separate households with multiple viewers.

Furthermore, the policy introduces complexities for subscribers with bundled Disney+ packages, such as those that include Hulu, ESPN+, or Max. These subscribers are currently ineligible to add Extra Members to their accounts, leaving them with limited options if they wish to share their subscriptions with individuals outside their household. Similarly, those whose subscriptions are billed through a third party are also unable to add additional members.

Disney’s official suggestion for those who cannot add Extra Members is that their family and friends purchase their own separate subscriptions. This approach, while potentially beneficial for Disney’s bottom line, is likely to be met with resistance from users who are accustomed to sharing accounts and are unwilling to incur additional costs.

To mitigate some of the disruption caused by the policy change, Disney is offering a profile transfer feature. This allows users to transfer their viewing history and settings to a new subscription or an Extra Member account, preserving their personalized experience. However, this feature is not available for minor or Junior Mode profiles, potentially creating challenges for families with young children.

The new policy also introduces potential hurdles for subscribers who travel or spend extended periods away from their primary residence. If a user logs in from outside their usual home, they may be prompted to verify their identity with a passcode and either designate their current location as "away from home" or update their registered address. This added layer of authentication is designed to prevent unauthorized access but may also inconvenience legitimate users who frequently travel or maintain multiple residences.

Disney’s decision to crack down on password sharing follows a similar move by Netflix, which has implemented its own paid sharing program with comparable restrictions and pricing. Netflix charges an additional $8 per month for each extra member on its Standard ($15) or Premium ($23) plans. The number of extra members allowed depends on the chosen plan, with the Standard tier permitting one additional account and the Premium tier allowing two. Like Disney+, Netflix’s ad-based tier does not support any extra accounts.

The trend of streaming services tightening their password sharing policies reflects a broader industry shift towards maximizing revenue and combating subscriber churn. As competition in the streaming market intensifies, companies are under pressure to find new ways to generate income and retain customers.

However, these measures have been met with mixed reactions from consumers. While some acknowledge the need for streaming services to address password sharing, others argue that these policies are overly restrictive and add unnecessary costs to an already expensive entertainment landscape.

Adding to the cost, rumors indicate that Disney is exploring the creation of a live TV channel setup similar to the FAST (Free Ad-Supported Streaming Television) channels available on the Disney-owned ABC app. However, unlike free services like Tubi or Plex, access to these ad-supported TV channels would likely require a Disney+ subscription, essentially recreating the traditional cable TV model within the streaming realm.

The overall sentiment among many consumers is that streaming services are increasingly resembling the very cable TV providers they initially sought to disrupt. By adding fees, restrictions, and ad-supported content, these platforms are, in some ways, reverting to the old model while simultaneously raising prices and inconveniencing users. The crackdown on password sharing is just one more element in this evolving landscape, leaving many subscribers feeling as though they are being forced to pay more for less flexibility and convenience.

Ultimately, the success of Disney+’s paid sharing program will depend on how users respond to the changes. If subscribers are willing to pay the extra fees or purchase individual subscriptions, Disney’s revenue will likely increase. However, if users choose to cancel their subscriptions or seek alternative streaming options, the company may face a backlash that could ultimately harm its long-term prospects. Only time will tell whether this strategy will pay off for Disney or further alienate its customer base.