Disney Plus' password-sharing crackdown is starting sooner than expected - here's what you need to know

Disney+ has already admitted it will be clamping down on users sharing passwords, copying a similar move by rival Netflix.

Now it seems the first stage of the crackdown has arrived.

As first noticed by unofficial fan site whatsondisneyplus, Disney+ has just updated its subscriber agreement to prohibit password sharing.

Those who do not comply may be blocked from using Disney+, the new subscriber agreement suggests.

It’s thought the password sharing ban will coincide with the arrival of adverts on Disney+ in the UK and other countries on November 1.

Disney+ is to follow in the footsteps of rival streaming service Netflix – by toughening its stance on password sharing

What is password sharing?

Password sharing is a habit adopted by users of steaming services such as Netflix and Disney+.

It involves a user distributing their password to other people who live outside their household.

This lets these so called ‘freeloaders’ access their account, create their own profile and watch films and TV shows without paying a penny.

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The new subscriber agreement, which has been sent to users in a lengthy email, reads: ‘Unless otherwise permitted by your service plan, you may not share your subscription outside of your household.

‘”Household” means the collection of devices associated with your primary personal residence that are used by the individuals who reside therein.

‘We may analyse the use of your account to determine compliance with this Agreement.

‘If we determine 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.’

It’s unclear how exactly the password sharing ban on Disney+ will work; MailOnline has contacted the company for more information.

Rather than just getting people to agree to the new subscriber agreement, there could be additional steps taken to prevent the password-sharing practice, akin to what Netflix has done.

Netflix tracks IP addresses and device IDs to determine the location of devices that are using a Netflix profile – and make sure they’re all in a single household.

Aside from a huge back catalogue of Disney movies, offerings on Disney+ include The Simpsons, Star Wars and Marvel films like The Avengers

This lets Netflix know whether an account is being used on a ‘trusted device’ – in other words, if they’re in the same location as other devices that are using the account.

If there’s a mismatch or any suspicious signs, Netflix can block the ‘untrusted’ device from accessing the account.

Alternatively, Netflix users who still want to share an account with people in a different home have to sign up to ‘paid sharing’ at a cost of £4.99/month ($8/month in the US) – ultimately driving the company’s profits.

Just months after Netflix’s password ban rolled out around the world, Disney revealed that it would follow suit.

Disney CEO Bob Iger said last month that the platform will crack down on password-sharing, but he suggested it won’t be enforced until next year.

During the firm’s quarterly earnings call, the CEO said Disney+ will ‘roll out tactics to drive monetization sometime in 2024′ – suggesting that more measures to enforce the ban are indeed on their way next year.

At the time, Disney+ also revealed that it will be rolling out adverts for users in the UK and other European countries on November 1, following the rollout to US users in December 2022.

Disney CEO Bob Iger (pictured) revealed last month that his streaming platform will crack down on password-sharing

Again, the platform seems to be taking its lead from Netflix, which introduced ads in November 2022.

As it happens, Amazon Prime Video announced last week it would also introduce ads to users from early 2024.

Disney explains: ‘Ads are typically shown before the video starts and throughout playback – similar to what you’d expect from commercials during a traditional TV broadcast.’

Currently, there is only one set price for Disney+ in the UK – £7.99 per month – but the entertainment giant is copying Netflix by introducing ‘tiers’.

These tiers – arriving on November 1 – will be ‘Standard with ads’ (£4.99 per month), ‘Standard’ (no ads, £7.99 per month) and ‘Premium’ (no ads £10.99 per month).

Premium will be the most expensive because it will provide 4K video quality, ‘immersive’ Dolby Atmos audio and up to four concurrent streams.

Currently, there is only one set price for Disney+ in the UK – £7.99 per month – but the entertainment giant is copying Netflix by introducing ‘tiers’

In comparison, Standard and Standard with Ads will only allow concurrent streams.

Premium and Standard won’t force customers to watch ads and will allow shows to be downloaded to devices to watch offline – but the same cannot be said for the new ad tier.

As well as the UK, these three tiers will roll out in several other European countries – including France, Germany, Norway, Spain and Sweden – as well as Canada.

For some reason, in the US, Disney+ only has two tiers – $7.99 per month with ads or $10.99 a month without ads.