Hulu Implements Single-Household Password Policy, Joining Other Streaming Services

In an industry-wide response to curb password sharing, Hulu, a subsidiary of Walt Disney Co. DIS, has updated its subscriber agreement to restrict account usage to one household, a measure similar to those taken by competitors like Netflix, Inc. NFLX. Hulu's latest policy change, effective from last Friday, is designed to reduce the widespread practice of sharing account credentials, aligning the company with a trend that major streaming service providers are adopting.

Streaming Industry Grapples with Password Sharing

Content streaming giants have long faced challenges due to widespread password sharing, leading to a potential loss in revenue and growth opportunities. Netflix, known for its large subscriber base, substantial content library, and role as a trailblazer in the streaming industry since its foundation in 1997 by Reed Hastings and Marc Randolph, has already taken steps to address this issue. Now Hulu is following suit, demonstrating the industry's increasing focus on account security and appropriate usage.

Hulu's Strategy Similar to Industry Leaders

Hulu's decision aligns with the strategic direction of fellow streaming companies. Alphabet Inc. GOOG, under which YouTube operates, has also taken initiatives in this space. Notably, Alphabet, formed in 2015 as a restructuring of Google, has grown into one of the largest tech entities globally, with sustained interest in ensuring their streaming services like YouTube are accessed in compliance with subscription terms.

Hulu, Netflix, Alphabet