Hulu Joins Streaming Giants Netflix, Disney+ And YouTube In Password Sharing Crackdown
Portfolio Pulse from Rounak Jain
Hulu, owned by Walt Disney Co. (NYSE:DIS), has updated its subscriber agreement to prohibit account sharing outside of a single household. This move follows similar actions by other streaming services like Netflix Inc. (NASDAQ:NFLX), Disney+, and YouTube, owned by Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), to tighten control over account usage and monetize account sharing.
February 01, 2024 | 7:48 am
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Alphabet Inc.'s YouTube has also enforced rules to limit account sharing, indicating a broader industry trend.
YouTube, part of Alphabet Inc., has already taken steps to enforce household-only usage for its family plan subscribers. As this is not new information, the short-term impact on Alphabet's stock is expected to be neutral.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Netflix Inc. previously updated its Profile Transfer feature and cracked down on password sharing, a trend now followed by Hulu.
Netflix has already implemented measures to limit password sharing, and Hulu's recent policy change is in line with these industry trends. The impact on Netflix's stock is likely to be neutral in the short term as the market has already absorbed the news of its own crackdown.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Walt Disney Co.'s streaming service Hulu has implemented a policy to limit account sharing, which could potentially increase subscription revenue.
The crackdown on password sharing by Hulu could lead to an increase in individual subscriptions as households that were previously sharing accounts may now need to get their own. This could have a positive impact on Disney's subscription revenue in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80