Hulu to Enforce Updated Subscriber Agreement Curbing Password Sharing

Hulu subscribers have started receiving communications about an impending amendment to the streaming platform's subscriber terms. The updated agreement, which Hulu will institute on March 14, stipulates a clear stance against the sharing of accounts beyond the household of the subscriber.

The new subscriber policy specifies that, with certain exceptions based on the level of service, subscribers are not allowed to share their account details with individuals outside their immediate household, defining 'household' as a group of devices located at the primary residence and used solely by inhabitants of that residence.

As part of this policy shift, Disney, the parent company of Hulu, also intends to employ account usage analysis as a technique to identify and act upon any instances of password sharing.

Previously, in 2023, Disney's other major streaming venture, Disney+, started taking a similar approach, identifying shared accounts among its subscriber base. Bob Iger, Disney's CEO, had previously disclosed that the company is engineering methods to counteract widespread account sharing. However, Iger did not provide precise figures regarding the extent of shared accounts.

Netflix had previously encountered a similar dilemma, identifying around 100 million accounts with shared passwords. Upon instituting its anti-sharing policies, including the introduction of fees for sharing, Netflix reported a substantial growth in its subscriber count.

The tightening of sharing policies seems to be part of a strategic move to expand Disney's profitability in the streaming sector. With Netflix having set a precedent with notable growth following its actions against password sharing, Disney is poised to replicate this strategy in the hopes of achieving a parallel increase in its subscriber base through Hulu and its other streaming services.