Disney+ Hotstar to Restrict Account Sharing in India Following Netflix’s Lead

Disney+ Hotstar to Restrict Account Sharing in India Following Netflix’s Lead

Disney+ Hotstar’s decision to limit password sharing among its premium users by allowing login from only four devices is a step to tackle the problem of unauthorized account access and sharing. With the growing popularity of streaming services and the ease of sharing login credentials, password sharing has become a concern for many streaming platforms, leading them to implement measures to restrict access to their content.

By enforcing this new policy, Disney+ Hotstar aims to curb the practice of password sharing and ensure that only authorized users have access to the premium content. This move is significant for Disney in a market like India, where the platform has a large user base and a substantial number of premium subscribers.

Limiting login to a specific number of devices can help prevent excessive sharing of accounts and ensure that each premium user gets the value they paid for. It also allows the streaming service to track better and manage account usage, which can help maintain the integrity of the platform and ensure a smooth user experience.

Disney+ Hotstar’s move to limit password sharing among its premium users is indeed following the footsteps of Netflix, which had implemented a similar policy in various countries in May. By informing subscribers that sharing the service with people outside their household would require an additional payment, Netflix aimed to curb unauthorized sharing and ensure that only authorized users can access the content.

In India, a premium Disney+ Hotstar account currently allows logins on up to 10 devices, even though the website states a limit of four. However, the company is internally testing the policy enforcement and plans to implement the restriction of logins to a maximum of four devices for premium accounts later this year.

implementing password-sharing restrictions can be a strategy for streaming platforms like Disney+ Hotstar to encourage users to purchase subscriptions. Initially offering a more flexible login policy, the platform may have aimed to attract potential subscribers who might have been introduced to the service through password sharing with friends or family.

The idea behind this approach is that users who enjoy the content and convenience of the service. At the same time, password sharing may eventually be motivated to sign up for their accounts once the restrictions are in place. By limiting the number of devices that can be logged in simultaneously, the platform intends to create a sense of exclusivity and encourage users to become paying subscribers to access the service from multiple devices without any restrictions.

streaming services have gained immense popularity in India, and platforms like Disney+ Hotstar, Netflix, Amazon Prime Video, and JioCinema are among the frontrunners in the country’s rapidly growing streaming market. India’s streaming industry is witnessing significant expansion, and it is projected to become a $7 billion industry by 2027, as estimated by Media Partners Asia.

Hotstar, which has since been rebranded as Disney+ Hotstar, holds a dominant position in terms of user base and subscriber numbers in the Indian market. With approximately 50 million subscribers, Disney+ Hotstar leads the pack and is considered one of the major players in the highly competitive streaming landscape in India.

The decision by Disney+ Hotstar in India not to enforce the four-device login policy earlier was likely driven by a desire to avoid inconveniencing premium users. The platform may have prioritized user experience and aimed to provide a more flexible and accommodating service to its paying subscribers. Internal investigations may have revealed that only a small percentage, around 5%, of premium subscribers were logging in from more than four devices. As a result, they may have believed that implementing strict device limitations for premium users at that time could have caused unnecessary frustration and dissatisfaction among most of their subscribers.

However, the forthcoming changes indicate a shift in the platform’s approach. By extending the device restrictions to the cheaper plan and limiting usage to only two devices, Disney+ Hotstar is adopting a more uniform policy across its subscription tiers. This change suggests that the platform is now prioritizing fair use and protecting content across all subscription levels, rather than offering different levels of flexibility based on the plan. This move may also be aimed at encouraging users to opt for higher-tier plans to enjoy more device logins, thereby potentially increasing average revenue per user.

The data from research firm Media Partners Asia clearly shows that Disney’s Hotstar has emerged as the dominant player in India’s streaming market between January 2022 and March 2023. With 38% of viewership, Hotstar has captured a significant share of the Indian streaming audience, surpassing its competitors by a large margin. During the same period, rivals Netflix and Amazon Prime Video held only 5% of viewership each, indicating the substantial lead that Hotstar has established over its competitors in terms of user engagement and popularity.

This data highlights the success of Disney+ Hotstar in catering to the preferences and demands of the Indian audience, effectively curating content that resonates with a wide range of viewers. The platform’s diverse and extensive content library, which includes a mix of regional and international scope, as well as live sports and other entertainment options, seems to have struck a chord with Indian consumers, driving significant viewership.

The news of Walt Disney exploring potential options for its India digital and TV business indicates the company’s strategic approach to navigate the competitive landscape and expand its footprint in India’s booming streaming market. With Disney+ Hotstar already being a dominant player in the Indian streaming space, the company seems to be actively considering various avenues to strengthen its position and explore new growth opportunities.

The discussions about forming a joint venture partnership or potentially selling the business altogether reflect Disney’s willingness to explore different business models and collaborations further to leverage its content and brand in the Indian market. Collaborating with local partners or selling a stake in the business could potentially help Disney tap into local expertise and resources, allowing it to cater to the unique preferences and demands of the Indian audience more effectively.