In response to the prevalent issue of password sharing in India’s booming streaming market, Disney+ Hotstar is poised to adopt a new policy aimed at limiting this practice. By allowing premium users to log in from a maximum of four devices, the platform intends to curtail unauthorized password sharing effectively.
This strategic decision closely mirrors Netflix’s earlier implementation of a similar policy, signaling a proactive approach by streaming giants to safeguard their content and maintain a fair user experience. With both industry leaders taking steps to tackle the challenge of password sharing, it signifies a pivotal moment in the evolution of India’s digital entertainment landscape.
As reported by Reuters, Disney is mirroring Netflix’s approach by adopting a comparable policy. Earlier in May, Netflix, a major competitor in the streaming realm, had already put into effect a similar measure across more than 100 countries. The policy stipulated that subscribers would need to make an additional payment to share the service with individuals outside their households.
At present, premium Disney+ Hotstar accounts in India allow logins on up to 10 devices, despite the website indicating a limit of four. However, the company has conducted internal testing of the new policy enforcement and plans to roll it out later this year. The primary objective behind this move is to restrict logins to a maximum of four devices for premium accounts, aligning Disney+ Hotstar’s strategy with the efforts made by Netflix to address the issue of account sharing.
According to the initial source, the implementation of the new restrictions may encourage certain users to consider purchasing their individual subscriptions. Initially, Disney+ Hotstar had adopted a more lenient approach with the four-device login policy, hoping to attract subscribers who would try the service through password sharing and later opt for personal accounts.
However, with the upcoming changes, the company aims to strike a balance between user convenience and fostering a genuine subscriber base, while also addressing the issue of account sharing.
Disney, Netflix, Amazon, and JioCinema have witnessed a remarkable surge in popularity within India’s streaming landscape. As per Media Partners Asia’s estimations, the streaming market in India is projected to grow into a substantial $7 billion industry by 2027.
Among these streaming giants, Hotstar stands as the market leader, boasting an impressive user base of approximately 50 million subscribers.
The second source revealed that Disney+ Hotstar initially refrained from enforcing the four-device login policy in India to avoid inconveniencing premium users. Their internal investigations indicated that only a small fraction, around 5% of premium subscribers, logged in from more than four devices.
However, with the upcoming changes, the restriction will extend to the cheaper plan as well, limiting usage to only two devices. This move demonstrates the platform’s commitment to addressing account sharing and maintaining a balance between user experience and policy enforcement.
According to data from research firm Media Partners Asia, Disney’s Hotstar dominated India’s streaming market from January 2022 to March 2023, securing an impressive 38% of viewership. In contrast, its rivals Netflix and Prime Video each held a smaller share of 5%.
Apart from the device login policy, Walt Disney is actively considering various options to strengthen its digital and TV business in India. Internally, discussions are underway to explore potential joint venture partnerships or even the possibility of selling the business, as revealed by a source with direct knowledge. These efforts signify Disney’s determination to adapt and expand its presence in India’s rapidly growing streaming market.
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