Disney+ password sharing crackdown: What you need to know

Just a few years ago, the streaming industry was more concerned about growth than revenue, and as long as subscriber numbers grew, investors were happy. And while the big streamers didn’t condone password sharing, they weren’t terribly concerned about it, either—after all, today’s password-sharing freeloader could become tomorrow’s paying subscriber, right?

Now, it’s all about profitability rather than sheer growth, and the streamers—including Disney (which, remember, owns Disney+, Hulu, and ESPN+) are focused on revenue and belt-tightening. Price hikes and cheaper ad-supported tiers are two ways to generate more cash, while cracking down on password sharing is a third.

Disney also has its eyes on Netflix, which just rolled out its own—quite successful—password-sharing crackdown, so it’s no surprise that Disney+ (along with Hulu and ESPN+) is next.

While we’re only now getting the details of how Disney+ account sharing will work, the streamer actually began barring password sharing earlier this year.

According to an updated Disney+ user agreement that was emailed to U.S. subscribers in early February (Canadian subscribers got a new user agreement last year), password sharing was officially prohibited for new signups as of that month.

For existing Disney+ account holders, the new password-sharing rules kicked in on March 14.

The new Disney+ user agreement, dated January 25, 2024, states:

Unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household. “Household” means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein. Additional Usage rules may apple for certain Service Tiers.

In other words, you can’t share your password with anyone who doesn’t live in your home, although Disney left some wiggle room for paid password sharing.

The language in the new Disney+ user agreement echoes that of Disney-owned Hulu, which sent out its own revised service agreement to members.

The new Disney user agreement says the company may “analyze the use of your account” to check if you’re breaking the password-sharing rules.

Specifically, Disney+ will determine the location of your “Household” (as Disney puts it) based on your “linked” devices, subscription activity, and “other factors.”

If you (or someone else) start streaming Disney+ on a TV-connected device from somewhere other than your “Household,” you’ll get a message on your screen that reads: “This TV doesn’t seem to be part of the Disney+ Household for this account”. (It’s worth noting that streaming Disney+ on your phone while outside your home is OK.)

At that point, you’ll have a few options. If you’re the account owner, you’ll be able to reset the location of your home (which you can only do a “limited” number of times), or you can select “I’m away from home” if you’re temporarily away; in either case, you’ll need to enter a one-time password sent to the account holder’s e-mail address.

You’ll also be able to add the device to your existing Disney+ household if you’re willing to pay for an “extra member.”

The final options are to either create a new Disney+ account (former Disney+ password sharers can transfer their old profiles to their new accounts), or simply sit there and be blocked.

If you’re a Disney+ Basic (with ads) subscriber, it will cost $6.99 a month to add an “extra member” to your account.

For ad-free Disney+ Premium subscribers, the cost is $9.99 a month for an extra member.

If those prices don’t sound a lot cheaper than the current Disney+ Basic and Premium rates, remember that Disney+’s prices will go up starting October 17 to $9.99/month for Basic subscribers (up from $7.99 a month) and $15.99 a month for Premium (up from $13.99 a month).

An “extra member” on your Disney+ plan will only be able to stream on one device on a time, versus “multiple” simultaneous devices for standard Disney+ subscribers.

Extra Disney+ members will also only be able to create a single profile.

That said, extra members will get the “same content and features” as the account holder.

Disney+ Basic subscribers, for example, can stream in 4K HDR and with 5.1 audio, while Premium subscribers get Dolby Atmos sound as well as downloads on up to 10 devices.

Nope–for now, only standalone Disney+ subscribers can add extra members to their accounts.