As the biggest hit 'Moving' rises... Disney+ follows Netflix in cracking down on account sharing

Recent Email Notice to Canadian Users
Disney to Increase Profitability by Cracking Down on Account Sharing

Following the global online video service (OTT) Netflix's move to restrict subscription account sharing, Walt Disney's OTT service Disney+ has also decided to crack down on account sharing. This policy will be implemented in Canada starting November 1.

According to foreign media including the Associated Press on the 1st (local time), Disney+ recently notified Canadian users via email that "the number of users who can access the service with the same account will be limited to members within the same household." Disney+ stated in the notice that "subscribers cannot share their accounts with anyone other than cohabiting household members, and violations may result in service restrictions or termination."

Earlier, Walt Disney CEO Bob Iger announced during the August earnings report that "we will increase the profitability of streaming services by cracking down on account sharing." This is expected to expand to other regions soon after North America.

A scene from Disney+'s most talked-about drama, "Moving" [Image source: Provided by Disney+]

With Disney+ joining Netflix in banning account sharing, this policy seems to be becoming the norm in the OTT industry. Netflix banned account sharing in over 100 countries worldwide starting in May. It is estimated that about 100 million people currently share accounts with acquaintances. Netflix stated, "Revenue has increased in countries where the account sharing ban policy has been implemented," and expects profits from this to fully materialize in the second half of this year.

As OTT platforms strive to overcome weakening profitability caused by slowing subscriber growth and boost their earnings, there is also analysis suggesting that the OTT-specific behavior of so-called "binge-watching" may be a reason users cancel their subscriptions.

In May, researchers Bomi Lee and Hyesoo Kim from Korea University's Department of Media published a paper titled "Why Do OTT Service Users Cancel Their Subscriptions?" analyzing that "users' binge-watching behavior depletes watchable content and reduces the necessity to continue subscribing." Watching multiple episodes of a drama at once leads to faster consumption of available content, and users who have watched all desired content no longer feel the need to pay subscription fees.

The researchers explained, "OTT providers' strategy of not releasing all content simultaneously is also aimed at preventing subscription cancellations." For example, the drama "The Glory," which recently gained attention on Netflix, was released in two parts with a time gap, and Disney+'s biggest hit "Moving" adopted a unique approach by releasing up to episode 7 at once, then releasing two episodes weekly thereafter.

This content was produced with the assistance of AI translation services.