NEWS  Smart TV  February 1, 2024  Reading time: ~1 minute)

Max (RS editor)

Huluhas followed in the footsteps of its sister companies Disney+ and ESPN+ by updating its subscriber agreement. The revised terms explicitly prohibit the sharing of account passwords and access beyond a user's household.

Documents dispatched to subscribers delineate the new terms, slated to take effect on March 14, 2024. Under these revisions, accounts are strictly confined to the "collection of devices associated with your primary personal residence." Any deviation from this policy may lead to sanctions, including access limitations or termination of service, at Hulu's discretion.

The language of these updates closely resembles alterations previously enacted by Disney+ last year. The overarching objective is to ensure that only members of a single household can access Hulu's services using a shared account. Both Hulu and Disney+ have committed to monitoring user activity to identify potential violations and enforce compliance rigorously.

The impetus behind this crackdown on password sharing was articulated by Disney CEO Bob Iger as early as August of the preceding year. Iger underscored the company's intent to leverage strategies to monetize this practice more effectively. During an earnings call, he hinted at the significant impact such measures could have on revenue, although precise projections remain undisclosed.

This move aligns with the industry trend observed in Netflix's success following the implementation of similar restrictions. Netflix experienced a surge of over 20 million subscribers across two consecutive quarters, partly attributable to these changes. While an uptick in cancellations ensued, the net effect, when juxtaposing new subscriptions against losses, remained positive.

 IMAGES CREDITS: HULU