Disney To Limit Password Sharing On Disney+ Hotstar India
The Walt Disney Company’s Hotstar India streaming service plans to limit account sharing, according to two sources.
The new policy would allow premium users to log in from only four devices, in an effort at limiting password sharing in the key market.
Disney+ Hotstar India logo
While the new policy would mark the first time that Disney has attempted to curb password sharing, such policies have become more common among streamers.
In May, Netflix implemented a new policy that stated subscribers in more than 100 countries would need to pay more in order to share their service with people outside of their households.
Photo:Indian Express
The Current Policy
Currently, Disney+ Hotstar in India allows logins on as many as 10 devices. The streaming service website however says the “number of devices that can be logged in” is four.
“Some people will be incentivized to buy their own subscriptions with new restrictions in place,” one source said.
Photo: TechCrunch. Disney+ Hotstar India
According to insiders, Disney+ Hotstar has already internally tested the enforcement of the policy. Disney plans to start implementing it later in the year.
Another source stated that Disney+ Hotstar in India did not previously enforce the four-device login policy, as it did not want to inconvenience premium users. Internally, the company detected that around 5% of its premium subscribers logged in from more than four devices.
Photo:amplitude.com
Disney Is Struggling In India
Currently, Disney+ Hotstar is the most popular streamer in India, with approximately 50 million users. That number can be translated to 38% of viewership. This puts Hotstar well ahead of rivals Netflix and Prime Video which each sit at 5%.
Despite these numbers, Disney has still struggled in India.
Photo: Disney
According to reports, Hotstar’s overall revenue for the fiscal year ending in September 2023 is expected to drop around 20% to less than $2 billion. Additionally, the service’s earnings before taxes, depreciation, and amortization are expected to fall 50% in the same period from about $200 million last year.
In order to alleviate some of the pressure in India, reports have suggested that Disney is looking into a joint venture or sale of Hotstar. The talks appear to be in early stages, however, and it is unclear which option, if any, Disney may pursue.
Photo: The Walt Disney Company
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