Hulu Follows Netflix in Crackdown on Password, Account Sharing

The logos for streaming services Netflix, Hulu, Disney+, and Sling TV on a remote control in Portland, Ore., on Aug. 13, 2020. Jenny Kane/AP Photo

Hulu will soon start rolling out restrictions on password and account sharing among users of the streaming service, following in the footsteps of rival Netflix and fellow streamer Disney+.

The streaming site recently updated its user agreement to add limitations on sharing accounts outside of households, warning current users that the new restrictions will begin in March.

Hulu’s revised terms of service now explain to users that “unless otherwise permitted by your Service Tier, you may not share your subscription outside of your household.”

The Disney-owned streamer defines the term “household” as “the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.”

“You agree not to impersonate or misrepresent your affiliation with any person or entity, including using another person’s username, password or other account information, or another person’s name or likeness, or provide false details for a parent or guardian,” the agreement terms continue.

Hulu’s new terms of use also note that users risk having their accounts terminated if they fail to comply with the updated password-sharing rules.

“We may, in our sole discretion, analyze the use of your account to determine compliance with this Agreement,” it continues. “If we determine, in our sole discretion, that you have violated this Agreement, we may limit or terminate access to the Service and/or take any other steps as permitted by this Agreement.”

Disney’s Plans to ‘Drive Monetization’

In an email to Hulu subscribers on Wednesday, the company said customers must comply with the new password-sharing rules by March 14 unless they choose to acknowledge an in-app notice of the changes earlier. However, for new subscribers, the updated account-sharing terms will apply as of Jan. 25.

Disney has effectively run Hulu since 2019 and took full control of the company in late 2023 after buying out Comcast.

The changes at Hulu come after Disney CEO Bob Iger hinted in August last year that the company would likely be moving forward with a crackdown on password sharing in an effort to “drive monetization” in 2024.

“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” he said during Disney’s fiscal third-quarter earnings call, The Wrap reported. “Later this year, we will begin to update our subscriber agreements with additional terms and our sharing policies. And we will roll out tactics to drive monetization sometime in 2024.”

Mr. Iger noted that Disney had made the topic of password-sharing a “real priority” and said the company believed “that there’s an opportunity here to help us grow our business.”

Netflix Reports Subscriber Increase

Streaming giant Netflix was the first to crack down on password sharing across accounts, with the California-based streamer first testing a ban on password sharing among nonhousehold members in Latin America before rolling out the changes in Canada, New Zealand, Portugal, Spain, and eventually the United States.

Netflix’s decision came after the company said unauthorized password sharing outside of households was negatively affecting its business and leading to a decline in subscribers and profits.

The company reported a record number of new sign-ups in the fourth quarter, with the streamer adding 13.1 million worldwide subscribers during the three-month period from October to December, well above analyst projections.

The company ended the year with a new record high of more than 260 million global subscribers, marking an annual increase of nearly 30 million subscribers.

According to CNN, the subscriber agreement for ESPN+, which is also owned by the Walt Disney Company, was also updated this week to explicitly state that users will have to comply with limitations on sharing their accounts outside of their households.

The Epoch Times has contacted a Disney spokesperson for comment.

The Associated Press contributed to this report.