Costco and Disney Crack Down on Account Sharing

In a significant shift, major companies like Costco and Disney are tightening their policies on account sharing, following in the footsteps of Netflix. Historically, consumers enjoyed the flexibility of using shared accounts for services like streaming and shopping, often leveraging expired student IDs or family memberships. However, advancements in technology, including sophisticated IP tracking and facial recognition, are enabling these companies to enforce stricter verification measures. Netflix, which previously overlooked password sharing to build a loyal customer base, is now capitalizing on its brand strength as competition intensifies. The streaming giant added 30 million subscribers last year and over 9 million in the first quarter of this year, indicating a successful transition to a more stringent policy. This change reflects Netflix's confidence that its extensive library of content has made it indispensable to viewers willing to pay for access. Disney's streaming services, including Disney+, Hulu, and ESPN+, have only recently turned profitable, highlighting the competitive landscape in the streaming market. As these platforms seek to solidify their financial footing, they are also adopting measures to limit unauthorized access, ensuring that only paying customers benefit from their offerings. Costco, reliant on membership fees for its business model, is similarly focused on maintaining the integrity of its membership system. With an entry-level membership costing $60 annually, Costco aims to reinforce the value of its services, banking on customer loyalty and the satisfaction derived from bulk purchasing. As these companies adapt to changing market dynamics, consumers may need to rethink their approach to shared accounts.