Netflix’s ban on password sharing was such a success (leading to record subscriber numbers) that Hulu, Disney+ and ESPN+ are now doing the same – what does it mean for YOU?

Netflix’s ban on password sharing led to a massive increase in subscribers – now Disney is copying the move on its three streaming services.

Disney’s service, Hulu, warned subscribers via email yesterday that it would be cracking down on sharing accounts with people outside the user’s household starting in March.

The new agreements – also sent to customers of Disney+ and sports streamer ESPN+ – now explicitly prevent you from impersonating a subscriber by using their name and password.

Users branded the measure as “garbage” on social media and vowed to cancel their subscriptions as companies crack down and raise prices.

But it comes a week after Netflix revealed that a similar crackdown on password sharing had indeed paid off for the company, leading to a huge increase in new subscribers.

The service announced last year that it had added 13 million new subscribers as it forced password “borrowers” to create their own accounts – despite causing an uproar when it implemented the rule in May.

The surge in new customers brought Netflix’s total number of subscribers to more than 260 million, firmly entrenching the company as the most popular streaming service in the world.

The latest quarterly report, announced earlier this month and covering the three months to December 2023, shows year-on-year subscriber growth of 12.8 percent. This was the fastest growth since 2020.

The company also reported fourth-quarter net income of $937.8 million, compared to $55.3 million in the fourth quarter of 2022.

About 40 percent of new subscribers in the US opted for Netflix’s cheapest plan – which includes ads – at $6.99 per month.

The ad-free tier, on the other hand, costs $15.49 per month.

Sharing logins has long been a cost-saving tactic for streaming service users. Following news of Disney-owned brands cracking down on password sharing, many users vowed to cancel.

Netflix announced it added 13 million new subscribers last year as password ‘borrowers’ were forced to create their own accounts

‘Netflix, now Disney and Hulu? I canceled most of my subscription services. Not only are they now much more expensive, they also want to crack down on password sharing to make more profits?’ wrote a user on X, formerly Twitter.

‘They really don’t want us to share passwords. I don’t pay for multiple streaming,” wrote another.

Another user said: ‘I really believe these streaming services are shooting themselves in the foot by ending password sharing. People will start cutting out the products they don’t use.”

Last year, Disney+ increased the price of its ad-free offering by 27 percent – ​​from $10.99 to $13.99.

Hulu also increased the cost of its ad-free plan by 20 percent in 2023 — from $14.99 to $17.99.

The vast majority of streaming platforms have increased in price over the past year – some by as much as 43 percent

Both providers offer an ad-free plan for $7.99 per month – and a variety of combo deals in addition to ESPN+.

For example, users can purchase the Disney Bundle Duo Premium, which includes Disney+ without ads and Hulu without ads, for just $19.99 per month, a savings of $11.99.

Or the Disney Bundle Trio Premium offering – which costs $24.99 per month – includes Disney+ without ads, Hulu without ads, and ESPN+ with ads.

Price increases have prompted Americans to cancel subscriptions at a record pace.

Others have developed their own tactics to keep costs down.

Deena Rae, who lives with her mother, her two adult sons and her teenage daughter in Houston, Texas, told DailyMail.com how they decided to cancel all but one service and share logins.

Deena Rae has also developed a tactic to keep costs down in her multi-generational home. Deena lives with her mother, her two adult sons and her teenage daughter in Houston, Texas

Nearly a quarter of U.S. subscribers to the major streaming services have deleted at least three in the past two years, according to subscription analytics firm Antenna.

The new Disney+, Hulu and ESPN+ User Agreement states: ‘You agree that you will not impersonate or misrepresent your affiliation with any person or entity, including using another person’s username, password or other account information, or the name or likeness of another person, or provide false details for a parent or guardian.”

The agreement adds that the companies can analyze users’ accounts to ensure they comply with the new rules – and violators can have their accounts restricted or terminated.

Disney CEO Bob Iger hinted at the move last August, when he said the company planned to tackle the password sharing problem by 2024.

“We’ve certainly made this a real priority,” he said during Disney’s third-quarter earnings call. “We actually think there’s an opportunity here to help us grow our business.”