The Walt Disney Company is following in the footsteps of Netflix and is set to limit account sharing significantly. Reuters reports that the streaming giant is readying a policy that will restrict premium account logins to only four devices in India. According to sources with direct knowledge of the matter, the company hopes to discourage password-sharing and incentivize users to buy their own accounts. It’s a smart move for Disney+ Hotstar, considering that the service is currently the most popular in the country. Data from research firm Media Partners Asia reveals that between January 2022 and March 2023, Disney’s streaming service secured 38% of viewership in the country, ahead of rivals like Netflix and Amazon Prime Video which have only 5% each. The streaming industry in the country is expected to grow to a whopping $7 billion by 2027.
The Indian arm of the company’s OTT streaming service is currently setting up an enforcement team to tackle the issue of password sharing; sources told Reuters. Previously, the company did not enforce its four-device login limit for fear of inconveniencing premium users and with the hope that those who shared their accounts would eventually get their own individual subscriptions. However, internal testing revealed that only about 5% of its premium users used their accounts on more than four devices.
Consequently, the company plans to enforce a policy allowing only four logins per account later this year. The move will apply to its premium accounts and cheaper plan, limiting usage to two devices. Disney+ Hotstar will also launch a new version of its app that will make it easier for people to use their accounts on only one device.
This policy change is similar to what Netflix did in May 2023, when it started informing subscribers in more than 100 countries that they would have to pay extra if they shared their accounts with people outside their households. Despite the crackdown, it’s unlikely that Disney+ Hotstar will lose many subscribers in the country as most of its competitors are not currently available in the country.
Besides offering a wide range of original content, Disney+ Hotstar provides a vast library of licensed movies and TV shows, live sporting events, and dozens of local channels. It’s also home to several popular international channels, including ABC, Showtime, and Disney Channel, which maintain syndication partnerships with the Indian service. In addition, the service offers a variety of regional languages and boasts more than 500 original hours of content in Hindi. It is available on various platforms, including iOS, Android, and Windows phones. It’s not clear if the company will add support for additional platforms in the future. The company is also in initial discussions to sell or find a joint venture partner for its India digital and TV business. This could potentially help the company save on the cost of maintaining its infrastructure in the country.
