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The streaming service rolled out a new ‘paid sharing’ option yesterday, marking a major shift in how it handles multiple users on the same account.

Disney+ password-sharing crackdown has begun ‘in earnest,’ but you can add an extra member to your account for a price

[Source Photo: Getty Images]

BY Janya Sundar2 minute read

As Disney CEO Bob Iger announced during a recent earnings call, Disney+ has officially launched its password-sharing crackdown “in earnest.”

Now, the company has rolled out a new “paid sharing” feature to Disney+ users in the United States and other regions, allowing users to add one extra member to their accounts for a fee, marking a major shift in how the platform handles account sharing. 

“But what about people outside of your Household? They will need to sign up and pay for their own subscription or be added as an Extra Member to your account for an additional monthly fee to continue enjoying Disney+,” the company explained in a blog post to customers. 

To add the extra member, account holders can pay an additional $6.99 per month for the ad-supported basic subscription or $9.99 per month for the premium ad-free plan. Only one extra member can be added per account, Disney says, and the option is not available to subscribers billed through third-party services or Disney’s bundled plans.

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Everybody’s doing it

Disney’s move follows a similar crackdown from Netflix, which led to a boost in subscribers. Disney-owned Hulu also restricted account-sharing in March, and Warner Bros. Discovery has announced plans to limit password sharing for its streaming platform Max. 

To curb unauthorized use, Disney+ will monitor account activity through device links and internet connections. If an account is accessed from outside the household, the system may prompt users with a message stating, “This TV doesn’t seem to be part of the Household for this account.”

Users can verify by either selecting “I’m Away from Home” or updating their household settings, which requires a one-time passcode sent to the account holder’s email.

“Your Disney+ subscription is meant to be used within your Household, which is a collection of devices associated with your primary personal residence,” the company said. 

Hoping to breed new subscriptions

Disney+ also allows people using someone else’s account to transfer their profile to a new stand-alone subscription, enabling users to retain their watch history and preferences when they create their own account. Primary profiles, minors’ profiles, and profiles set to “Junior Mode” are ineligible for transfer.

The company’s expanded paid-sharing rollout comes less than a month before its U.S. prices are set to go up. As of October 17, Disney+ Basic and Disney+ Premium monthly subscriptions will increase by $2. Disney is also hiking the prices of Hulu, ESPN+, and its multi-service bundles.

Disney+, Hulu, and ESPN+ turned a profit for the first time this past quarter, and Disney is likely looking to maintain that profitability with price increases and paid sharing.

“We started our password-sharing initiative in June,” Iger told investors this summer. “That kicks in, in earnest, in September. By the way, we’ve had no backlash at all to the notifications that have gone out and to the work that we’ve already been doing.”

As the streaming wars heat up and companies look for ways to drive growth and increase revenue, paid sharing programs like Disney’s are becoming the new norm across platforms. For now, Disney is hoping that its flexibility for users who travel or live apart will help reduce password sharing while encouraging more signups.

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ABOUT THE AUTHOR

Janya Sundar is an editorial intern for Fast Company, where she writes about the intersection of business, media, and technology. . She is currently a senior at Northwestern University studying journalism, economics, and data science More


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