Disney Plus Password-Sharing Crackdown Will Ramp Up This Summer

Begun, the password-sharing war has. Disney will ramp up its crackdown on Disney+ subscribers who let others outside their household utilize their plans with new term agreements next month and further measures beginning this summer in the US.

Variety reports Disney has already been notifying Disney+ and Hulu users about updated subscriber terms--which will start March 14--that prohibits sharing passwords with people who don't reside with them. In addition, this summer will see the option for Disney+ members to pay an additional fee to provide access to those outside their home.

Disney CFO Hugh Johnston reportedly elaborated a bit about this plan on an investors call earlier this week. "As it relates to the opportunity we see on paid sharing, beginning this summer Disney+ accounts suspected of improper sharing will be presented with new capabilities to allow their borrowers to start their own subscriptions," Johnston said.

The Disney+ password-sharing crackdown began in September in Canada, where subscriber terms were updated to enforce banning the practice. Last year Netflix also started prohibiting password-sharing, which then led to a huge growth in subscribers for the streaming company.

Meanwhile, Disney+ just lost 1.3 million subscribers after a price hike happened in December. Johnston said boosts to membership growth from new password-sharing rules probably wouldn't be seen until the second-half of this year.

Yesterday, Disney also unveiled a "persistent universe" tied to Fortnite is in the works, alongside a $1.5 billion investment for Epic Games.