Report: After Netflix, Disney+Hotstar plans to restrict account sharing in India to boost subscription

After streaming giant Netflix recently announced restrictions on password sharing in India, Disney + Hotstar is reportedly gearing up to introduce similar restrictions on Indian users.

The platform will start a policy that will allow premium users to login from only four devices, as opposed to the current limit of 10 devices, sources told Reuters.

However, the streaming platform on its website already states that the number of devices that can “be logged in” is four.

According to the Reuters report, Disney has started testing this rule internally and hopes to formally announce it later this year.

Disney had initially hoped that not strictly enforcing the four-device login policy would attract subscribers who would watch the platform's content through password sharing but then eventually buy their own accounts.

According to another source, the restriction will also apply to the cheaper subscription plan which will limit the usage to two devices.

Disney+Hotstar, Walt Disney's streaming platform is popular in India, but has found subscriptions dip in recent times.

The platform reported an eight per cent dip in subscriber base in the January-March quarter, a Livemint report stated.

Multiple reasons contributed the dip; the most significant being the loss of digital rights to stream the Indian Premier League (IPL).

The termination of the its content deal with HBO which saw removed over 100 much-watched HBO originals including Succession and Game of Thrones leaving the platforms also affected subscriptions.

However, a strong hold on regional content has kept Disney + Hotstar ahead in the race in India.

Disney's Hotstar topped India's streaming market between January 2022 and March 2023 with a 38 per cent share of viewership, far ahead of Netflix and Prime Video held 5 per cent each, according to data from research firm Media Partners Asia

India has emerged as a major market for streaming platforms including Netflix, Amazon Prime Video and Disney + Hotstar.

According to Media Partners Asia estimates, the Indian streaming industry could become a massive $7 billion sector by 2027, as estimated by Media Partners Asia. Hotstar is market leader in terms of users with approximately 50 million.

In July, Netflix brought its global crackdown on password sharing in India too, limiting one Netflix account to one household. The streaming giant added nearly 6 million subscribers globally since the launch of restrictions in May.