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Randy Shropshire/Getty Images for Hulu
Hulu is officially following in the footsteps of its corporate sibling Disney+ and streaming giant Netflix by implementing restrictions on sharing subscriber accounts and passwords.
The measure has been expected for several months. Last summer, Disney CEO Bob Iger told Wall Street analysts during an earnings call that the company “will begin updating our subscription agreements with additional terms and our exchange policies.” Flagship streamer Disney+ began the process last year and this month began rolling out changes to Hulu.
Hulu’s new account sharing terms will apply starting January 25 for new subscribers, the company explained in a note to subscribers. For previous and existing subscribers, the terms will take effect on March 14, 2024, unless you acknowledge an in-app notice of these changes prior to that time.
The streaming service is “adding limitations on sharing your account outside of your home and explaining how we can evaluate your compliance with these limitations,” the notice said. It is also “updating aspects of our dispute resolution policies.”
Disney has not offered any estimates on the impact of the policy changes on subscriber levels. In the case of Netflix, the company has seen better-than-expected results with its “paid password” initiative, in part due to the simultaneous launch of its $7-a-month advertising tier. Overall subscriber levels have grown steadily in recent quarters as the new password policy was implemented. Wall Street analysts have called paid password sharing a multibillion-dollar revenue opportunity, noting that Netflix and other streaming services once encouraged sharing with a wink, but changed their stance once streaming matured.
Wall Street is watching Disney’s streaming business closely, and the company has reaffirmed its profitability guidance by the end of fiscal 2024.
The company included an optimistic note in its communication with customers. “We are as committed as ever to making sure you have an enjoyable streaming experience,” he said.