Disney+ Password-Sharing Crackdown Begins

Disney will soon begin testing a restrictive password-sharing policy much like the new rules at Netflix. The company sent an email to all Canadian subscribers this week explaining that new guidelines will go into effect on Nov. 1. Presumably some version of this policy will eventually be in effect worldwide, just as Netflix tested its password-sharing restrictions in other territories before bringing them to the U.S.

Disney's email to Canadian users did not explain how the new password-sharing rules will work, according to a report by The Verge. Instead, it says that the company is "implementing restrictions on your ability to share your account or login credentials outside of your household." The company updated its Help Center as well, adding the phrase: "You may not share your subscription outside of your household." Many users read the email as an admonition more than a rule change.

The company added a new section to the subscriber agreement in Canada titled "Account Sharing," which warns that the company may "analyze the use of your account" to see if it is being used in multiple houses. If so, the company reserves the right to limit account functions or terminate a subscription.

Right now, we can only speculate about Disney's password-sharing rules based on the rules that Netflix rolled out over the last year or so around the world. The company uses IP address identification and geo-location to determine if an account is used in multiple places. It asks the account holder to identify their primary residence and gives them centralized control of the devices their account is used on, so that they can log out remotely from other places. Users on certain premium plans have the option to add extra households to their account at a price cheaper than a stand-alone plan, but they still have a limit on how many screens can be playing simultaneously on one account.

Social media commenters strongly condemned Netflix for this new policy as it rolled out, and many predicted an overall loss in subscribers or profits. However, many also expected other streamers to follow suit. Sure enough, Disney CEO Bob Iger mentioned the company's interest in this kind of policy last month on the company's Q3 earnings call.

For now, the U.S. is unaffected by this mysterious new policy and Disney has not mentioned any plans to crack down here. It's unclear when Canadian users might find out the details of the new rules they are subjected to.