Hulu has joined the ranks of streaming services taking a stand against password sharing, following in the footsteps of its parent company Disney. The Disney-owned platform recently updated its subscriber agreement to explicitly prohibit sharing passwords beyond a single household. Subscribers have been notified via email that this crackdown on password sharing will be enforced starting March 14, according to The Hollywood Reporter.
New Terms of Service
The updated terms of service, effective January 25, state that subscribers are not permitted to share their subscription outside their household. The term “household” is defined as the collection of devices associated with the subscriber’s primary personal residence and utilized by the individuals residing therein. This move by Hulu marks a significant shift in its policy regarding password sharing, aligning it with similar measures adopted by other streaming services.
Following Netflix’s Lead
Hulu’s decision to clamp down on password sharing mirrors actions taken by Netflix, which initiated efforts to curb unauthorized account sharing in the US in May 2023. Netflix’s move came in response to a decline in subscribers for the first time in over a decade in 2022. Despite initial backlash from subscribers, Netflix’s crackdown proved successful, resulting in a significant influx of paying users, with over 30 million added in 2023.
Industry-wide Response
Following Netflix’s lead, other streaming services, including Disney+, have followed suit in addressing the issue of password sharing. Disney CEO Bob Iger acknowledged the prevalence of password sharing on Disney+ and pledged to take measures to address it. Disney began implementing restrictions on password sharing late last year, and similar to Hulu, updated its terms of service to include clauses prohibiting unauthorized sharing.
Response from Hulu
Despite inquiries from Business Insider outside of regular working hours, Hulu has yet to provide a comment regarding its decision to crack down on password sharing. However, this move underscores the broader trend within the streaming industry to safeguard subscription revenue and ensure fair usage of streaming services among households.
In conclusion, Hulu’s decision to ban password sharing reflects its commitment to protecting subscription revenue and enforcing fair usage policies. With streaming services increasingly confronting the issue of unauthorized account sharing, measures like those implemented by Hulu and other platforms are aimed at preserving the integrity of their subscriber base and sustaining long-term growth in an evolving digital landscape.
