Hulu, Disney+ cracking down on password sharing after Netflix success: Will more streaming services follow?

(NEXSTAR) — Chances are, your household is paying for at least one streaming service. Recent surveys have found anywhere from 88% to 99% of households subscribe to at least one, with the average number per household being close to three. 

If you fit the bill for an “average” household, there’s also a chance you were impacted by recent password-sharing crackdowns. 

Last year, Netflix began cracking down on password sharing — using someone else’s account to watch content rather than paying for your own — and pushing users to either create sub-accounts or for moochers to start their own. 

The streaming giant knew it wouldn’t be a well-loved move, telling shareholders in April that it expected “a bit of a cancel reaction.” 

Netflix’s decision to abandon its long-established practice of allowing account sharing with members outside the household appears to have paid off, though. 

By October, roughly six months after it began cracking down on password sharing in the U.S., Netflix reported subscriber gains that surpassed projections. Last month, Netflix reported its third consecutive quarter of subscriber growth, despite the crackdown and yet another subscription price hike.

There are, of course, other streaming services following suit. 

Late last summer, Disney+ announced plans to crack down on password sharing at the start of 2024, with CEO Bob Iger calling it a move to “drive monetization.” That announcement came after Disney+ saw a second consecutive quarter of subscriber drop-off. 

Disney followed through on that promise, warning subscribers of its platforms — Disney+, Hulu, and ESPN+ — last month that it was updating the subscriber agreement and imposing “limitations on sharing your account outside of your household.” Those changes were effective as of January 25 for new subscribers and will kick in for current subscribers come March 14. 

So what about other streaming services? Will they soon crack down on account sharing?

Max, previously HBO Max, says in its terms of use that it can “modify access or disable features, including for security reasons, to limit the impact of account sharing outside of your household or where we have concluded in our discretion that there has been a misuse of your Max Account.” A spokesperson for the company didn’t immediately respond to Nexstar’s request for comment, but IndieWire reports, citing a source, that Max could begin cracking down on password sharing this year.

NBC’s Peacock, which once included an Easter egg from “The Office” in its terms and conditions, notes that the streaming service and its content “may not be shared beyond your household unless otherwise permitted by your subscription plan.” It doesn’t stipulate any other restrictions, and the company says an account can have up to three streams at a time and up to six profiles.

CBS’s Paramount+ also does not currently restrict account sharing. In a November 2023 earnings call, CFO Naveen Chopra said password sharing is not viewed “as a major headwind to our growth efforts” but added that “it’s something that we’ll continue to monitor.”

Amazon says Prime benefits, like Prime Video, can be shared with members of your Amazon Household, though the company doesn’t specify that that member has to live within your physical household. Apple says its streaming service, Apple TV+, can be shared with up to five family members, but it doesn’t explicitly bar accounts from being shared with members outside the household. A representative for Apple didn’t immediately respond to Nexstar’s requests for comment. 

Just because these streaming services aren’t cracking down on password sharing now doesn’t mean it’ll stay that way. Netflix once called love “sharing a password,” and former CEO Reed Hastings described it as “something you have to learn to live with.”

Streaming services also have other challenges to juggle, and the ability to draw revenue from viewers who aren’t paying for a subscription may be tempting.

However, The Wall Street Journal reported earlier this year that customer cancellations across the major streaming platforms rose to more than 6% in November. Cracking down on account sharing could encourage those looking to drop a streaming service to do just that, Sarah Lee a research analyst with Parks Associates told USA Today.

“The ‘streamflation’ era is upon us, and consumers should expect to be hit with price hikes, password sharing limits, and enticed with ad-supported options,” Scott Purdy, U.S. media leader for KPMG, told the Associated Press.

The Associated Press contributed to this report.