Disney+ is set to undergo a significant change from November 1st. In an effort to combat password sharing, Disney Plus has sent out emails to its Canadian subscribers, alerting them to upcoming restrictions on this common habit. Although they haven’t shared a blueprint for this plan’s implementation, they are acting against it nonetheless.
The updated service agreement for Disney Plus users residing in Canada now explicitly states, “Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household.” The term ‘household’ is clearly defined as the collection of devices associated with one’s primary personal residence, intended for use by the individuals residing there.
This development should not come as a complete surprise, as Disney CEO Bob Iger announced plans to address password sharing during a Q3 earnings call just last month. The company has since made good on this commitment by updating subscriber agreements with terms that reflect the new policy, reinforcing the message that sharing your password with others is no longer acceptable.
Disney Plus is mirroring Netflix’s successful strategy. This move comes as Disney Plus has faced significant challenges after heavy losses.
To sum up, this move is nothing but copying Netflix. And hopefully, Disney+ will also gain higher revenues, if and only if they could match up with Netflix in terms of content.