Hulu and Disney+ Are Banning Password Sharing, Threatening 'Termination' of Accounts in New Crackdown Disney CEO Bob Iger hinted that this was coming in an earnings call last summer.
It's the end of an era for Disney+ and Hulu password moochers, as Disney has announced it is going to begin cracking down on password-sharing among subscribers.
On Wednesday, Disney issued a letter to Hulu subscribers stating that it would begin "adding limitations" on "sharing your account outside of your household" starting March 14.
The company also quietly updated its Subscriber Agreement on January 25 to include information about account sharing.
"Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household," the new policy states. "'Household' means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein."
If subscribers are found in violation of the rule, Hulu "may limit or terminate access" to the account.
Disney+ and ESPN+ have also updated their Subscriber Agreements to say the same, but there is no date on record of when the document was updated. Disney+ began banning users from password sharing outside of the same household in Canada last October.
Disney took operational control and a majority stake in Hulu in 2019 when it acquired 21 Century Fox's assets and began merging Hulu and Disney+ content in May 2023.
Disney gained full control of the streaming service in November 2023 when it bought out Comcast's remaining 33% stake for an estimated $8.6 billion.
Disney CEO Bob Iger hinted that changes may come to Disney's streaming service platforms during a Q3 2023 earnings call in August 2023 when the company announced price hikes for certain tiers of Disney+ and Hulu subscriptions.
"In calendar '24, we're going to get at this issue," Iger said regarding subscribers and password sharing at the time. "We certainly have established this as a real priority. We actually think that there's an opportunity here to help us grow our business."
The Walt Disney Co. was down just over 11.3% in a one-year period as of Thursday afternoon.