Walt Disney’s streaming service in India is set to implement a new policy for its premium users, restricting login access to only four devices. The move is intended to address the issue of password sharing in this crucial market.
As per a report by Reuters, this development comes at a time when streaming competitor Netflix has already begun notifying subscribers in over 100 countries that additional charges will apply for sharing the service with individuals outside their households.
In India, the premium account of Disney Hotstar’s streaming service currently permits logins on up to 10 devices, despite the website displaying a limit of four devices.
However, the company has conducted internal testing to enforce the policy, and it is scheduled to roll out the implementation later this year. The objective of this measure is to restrict logins to a maximum of four devices for premium accounts, as a means to address the issue of excessive device sharing.
“Some people will be incentivised to buy” their own subscriptions with new restrictions in place, said the person, Reuters reported.
Disney had initially adopted a lenient approach towards the four-device login policy, with the hope that it would attract subscribers who might begin accessing the service through password sharing and eventually transition to purchasing their own accounts, according to the source.
In India, Disney, along with streaming giants like Netflix and Amazon, as well as billionaire Mukesh Ambani’s JioCinema, has experienced significant popularity. The Indian market is projected to expand into a substantial $7 billion sector for the streaming industry by 2027, as estimated by Media Partners Asia.
According to industry data, Hotstar holds the position of market leader in India, boasting approximately 50 million users.
Reuters further informed citing the second source that Disney Hotstar in India had refrained from strictly enforcing the four-device login policy to avoid inconveniencing its premium users. Internally, the company found that only about 5% of its premium subscribers were logging in from more than four devices.
The upcoming restriction on device logins will also extend to Disney Hotstar’s cheaper plan, limiting its usage across two devices, Reuters reported citing the second source.
In the period from January 2022 to March 2023, Disney’s Hotstar dominated India’s streaming market with a significant 38% share of viewership, as reported by research firm Media Partners Asia.
Walt Disney is also in initial discussions internally to explore options to sell or find a joint venture partner for its India digital and TV business, according to a source with direct knowledge.
Source By: livemint
