After Netflix, Disney-Hotstar to stop password sharing: How live streaming services are losing revenue because of password sharing

In a bid to counter password sharing, Disney+Hotstar, the leading streaming service in India, is going to implement some changes in its policies. The OTT platform is in the process of conducting internal testing to enforce this new policy. As per the proposed changes, which are expected to be effective later this year, the device logins with one password could be capped at four for premium accounts, according to reports.

Disney+Hotstar proposed changes 

While Disney+Hotstar officially allows its premium subscribers to login in from up to four different devices, users were able to use up to 10 devices per account without any restriction. The OTT platform was not cracking down on device sharing so far. However, in light of continuing losses, Disney+Hotstar will be cracking down on password sharing to boost average revenue per user (ARPU). The password-sharing restrictions will not only apply to premium subscribers but also cheaper plans which will restrict the number of devices per account to two. 

The decision to limit device logins highlights the increasing pressure on streaming services to protect their revenue. Netflix has recently rolled out its new policy which prevents users from sharing passwords with people outside their household in over 100 countries, including India. The streaming platform immediately saw benefits as the number of users signing up saw a significant jump. 

Disney+Hotstar dominates India's streaming market

Disney+Hotstar is a key player in India's streaming scene, with an impressive tally of around 50 million users. From January 2022 to March 2023, it held a dominant 38 per cent share of the country's viewership, according to Media Partners Asia. By comparison, competitors Netflix and Amazon Prime Video each held just 5 per cent.

Drop in subscriber base and reduced losses

Disney+Hotstar saw its user base shrink by 4 million in the first three months of 2023. This was the second consecutive quarterly fall and came on the heels of its first-ever decline in 2022. Despite these setbacks, Disney managed to trim its streaming losses by $400 million, representing a year-over-year reduction of 26 per cent.

Disney+Hotstar, specifically in India and parts of Southeast Asia, suffered a substantial loss of 4.6 million subscribers in the last quarter of 2022. The decline was largely linked to Disney's loss of streaming rights to the Indian Premier League (IPL), leading to a lowering of growth targets for Disney+ Hotstar in India.