Following the huge success of Netflix’s account sharing clampdown that has resulted in the streaming service adding over 20 million new subscribers, it should come as no shock to learn that later this year, Disney is going to start clamping down on account sharing for Hulu and Disney+.

Updated terms of service are currently being sent out to subscribers, indicating that from March 14th 2024, accounts should only be accessed by people living in a single household. Disney is planning on announcing more details on its password-sharing crackdown later this summer and will offer subscribers the option of adding additional users in other locations at an additional fee.

With the current economic climate and with studios turning a blind eye to account sharing between friends and families for years, with every streaming service looking to raise their profits by increasing prices and making it harder to share accounts, it should come as no surprise to hear that many subscribers aren’t happy.

Any time a price rise or account sharing crackdown is mentioned, one look into the comments will show you how lots of people disagree with the studios wanting to make more money. However, Netflix’s success in getting 20 million new subscribers by making account sharing harder has proven people are willing to change, but not all streaming services are equal.

Recently, Forbes surveyed 2000 Americans to see how much they’re spending on streaming services, how password crackdowns have affected them, and which streaming services they’re willing to cancel if prices increased or password-sharing crackdowns were enforced.

The report showed that 33% of Americans surveyed had created their own Netflix streaming account after the streaming service started its password crackdowns.

This report also showed why the studios are doing this clampdown, with 56% of those asked still accessing streaming services through friends and family accounts.

However, there is a potential issue for the streaming services, as 90% claim they will discontinue streaming services if higher prices or stricter password sharing are enforced in 2024.

Unfortunately for Disney, from these 2000 people surveyed, Disney+ is the streaming service that could be hit hardest as 43.6% of respondents have said they are ready to cut ties if faced with higher costs or tighter access controls. Hulu sits in second place at 40%, while ESPN+ is at 35%.

With streaming prices increasing, many households are looking at their monthly bills and trying to work out how to save money.  Many are slowly moving over to the cheaper ad-supported tiers, which ironically is what the studios actually want people to do since, through advertising, the streaming services will actually make more money than through the more expensive ad-free tiers.

There is a balancing act that all of the streaming services are going to have to juggle. Account sharing has been abused for many years, but a strict clampdown may have the opposite effect.

Disney does currently offer Disney+, Hulu and ESPN+ in a bundle, which is much cheaper with ads.  It is also getting ready to fully launch Hulu On Disney+ in March, which will bring more content into Disney+ in the United States to match how it operates internationally.  In the US, over the past few years, Disney+ has had one of the smaller libraries and much less variety, which is why the launch of Hulu On Disney+ and the potential eventual merger of Hulu into Disney+ will likely strengthen its position against Netflix and Amazon Prime Video.

Later this year, Disney+ will celebrate five years since its initial launch, and while many may give a new streaming service some leeway, in the past year, we’ve seen Disney+ go through some major changes.  The amount of original programming has been reduced, as the company looks to cut costs and look to repair its core brands like Marvel and Star Wars from franchise fatigue.

Disney+ has also suffered from drastic cuts to its original programming lineup, with hundreds of originals being removed to “write them off” and the streaming service has also lacked any major new additions to its library, with thousands of titles from Disney’s vault still not available on Disney+.

Throw in questionable programming, with some poor-quality shows and films, which have caused many to question Disney’s creative output, and Disney+ is suffering from decisions made in the last few years.

Hopefully, things will improve in the future, with Disney making creative changes to improve the quality of its products, and the introduction of Hulu On Disney+ will provide adults with much more variety and choice to watch.  But right now, this latest report highlights that Disney can only push the subscribers of Disney+, Hulu and ESPN+ so far before people start unsubscribing.

 

Would you think about cancelling Disney+ if the price rises any more?  Or if password sharing becomes harder?  Let us know on social media!

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Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Roger@WhatsOnDisneyPlus.com Twitter: Twitter.com/RogPalmerUK Facebook: Facebook.com/rogpalmeruk

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