Disney’s Hotstar India streaming service is taking a significant step to curb password sharing among its users, following in the footsteps of rival Netflix. The company plans to cut down on account sharing to restrict unauthorized access to its content, and it will now allow only its premium users to log in from a maximum of four devices.
This move comes after Netflix informed subscribers in more than 100 countries that they would need to pay more to share the service with people outside their household. In contrast, a premium account of Disney+ Hotstar in India currently allows logins on up to 10 devices, even though the website mentions a limit of four devices.
Initially, the OTT platform hesitated to enforce the four-device login policy, fearing it might inconvenience premium users who were sharing passwords. However, the platform found that only around 5% of its premium subscribers logged in from more than four devices. Now, with India emerging as a crucial market for Disney, the company is taking this approach to maintain revenue growth. The new restriction will also apply to the cheaper plan, limiting usage to two devices.
The OTT space in India is dominated by major players such as Disney, Netflix, Amazon, and Mukesh Ambani’s JioCinema. The market is expected to grow into a $7 billion sector by 2027, according to Media Partners Asia estimates. Currently, Hotstar is the market leader in terms of users, boasting approximately 50 million.
Between January 2022 and March 2023, Disney’s Hotstar secured a 38% share of viewership, making it the top streaming platform in India. In comparison, rivals Netflix and Prime Video each held a 5% share of viewership during the same period, as reported by research firm Media Partners Asia.
Disney+ Hotstar has internally tested the enforcement of the policy and plans to implement it later this year, limiting logins to four devices for such accounts. The company believes that some users will be incentivized to purchase their own subscriptions with the new restrictions in place. Overall, this move is expected to reshape the streaming landscape in India and encourage users to opt for personalized subscriptions.
