NEW DELHI: In a bid to combat password sharing and increase revenue, Disney+ Hotstar is taking a page from Netflix's playbook by introducing a new policy that restricts account sharing among its premium users in India. The streaming platform plans to limit the number of devices that can access a single premium account to a maximum of four. This move comes as Disney+ Hotstar faces growing competition from other streaming services in India and seeks to ensure a sustainable business model.
Initially, Disney+ Hotstar adopted a lenient approach, allowing up to 10 devices to access a premium account to attract a broader audience. However, internal tests revealed that only around 5 percent of premium subscribers accessed their accounts from more than four devices, prompting the need for stricter measures.
The company is currently conducting internal tests to gauge the effectiveness of its new enforcement policy. The primary objective behind the move is to encourage users to opt for their individual subscriptions instead of relying on shared accounts. By limiting the number of devices accessing a premium account, Disney+ Hotstar aims to incentivize users to subscribe independently, leading to a more sustainable revenue stream and improved user experience.
Netflix, another major player in the streaming industry, recently rolled out paid sharing features in India. Under this new change, Netflix users are no longer able to share their account passwords with friends, signaling a significant shift in their approach to tackling account sharing. The streaming giant has been actively combatting this issue on a global scale and is now sending warning emails to members found sharing their accounts outside their households.
Both Disney+ Hotstar and Netflix's efforts aim to promote individual subscriptions and create a more viable business model. By setting device limits, they seek to strike a balance between providing user convenience and maintaining a fair revenue structure, benefiting both the companies and their subscribers.
For Netflix users, a Household refers to a collection of internet-connected devices used to access the content at the main viewing location, including devices connected to the same internet connection as the TV used to create the Netflix Household. The new policy aims to ensure account sharing is limited to individuals within a single household, discouraging password sharing with friends or acquaintances.
The move by Disney+ Hotstar comes as they face increasing competition from other streaming services in India and concerns about the impact of password sharing on the streaming experience. The company's internal tests have shown that stricter measures are necessary to address the issue effectively.
Disney+ Hotstar and Netflix's measures represent a strategic move towards boosting individual subscriptions and creating a more sustainable revenue model. By conducting internal trials and limiting device access, these streaming giants aim to strike a balance between user convenience and maintaining fair revenue structures, benefiting both the companies and their subscribers.
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