Lucasfilm
Playtime’s over for freeloaders.
Password-sharing crackdowns on streaming services have exceeded expectations, so those still logged into their sibling’s or ex’s account should prepare to pay up.
Netflix once made waves by locking out moochers. Although customers complained, that decision drove a record year of subscriber signups, including its best-ever quarter.
Other media giants are now mimicking that strategy.
Disney defied Wall Street’s estimates by announcing that it added 2.5 million Disney+ and Hulu subscribers in the first three months of 2025. Many analysts had expected the customer base to shrink, considering that streaming growth has slowed in recent years.
So-called “paid sharing” helped revive Disney’s streaming growth, CEO Bob Iger said on Wednesday’s earnings call. This program allows account holders to pay an extra $7 to $10 a month — depending on their plan — for users outside their household. Otherwise, freeloaders who want to keep watching must get their own account. This rollout began for Disney+ users in the fall and for Hulu customers in March.
Disney isn’t alone. Warner Bros. Discovery rolled out paid sharing for Max in late April in a bet that doing so would kickstart growth, though the password-sharing crackdown hasn’t extended to all users yet. It looks like NBC will follow suit, as it updated Peacock’s terms of service late last year to warn users not to share passwords outside their household.
Not everyone has jumped on the bandwagon, as Paramount and tech giants like Amazon and Apple aren’t yet cracking down on users who watch someone else’s account.
But could they be next? Those streaming services are meant to be for a single household, so their parent companies could change course.
Those who get locked out of their favorite streamers won’t be thrilled, but the good news is that there are more cheap options than there were a few years ago.
Most major streamers now have more affordable ad tiers, which are increasingly popular, including with customers who never wanted to pay in the first place.
The post The freeloader era of streaming is over appeared first on Business Insider.
