Walt Disney (DIS  ) reportedly plans to enforce a policy that will limit premium users of its Disney+ Hotstar streaming service in India to logging in from just four devices.

What Happened: The plan follows Netflix's (NFLX  ) move in May to inform subscribers in over 100 countries that they would need to pay more to share the service with people outside their households. Currently, a Disney+ Hotstar premium account in India allows logins on up to 10 devices, even though the website states the limit is four.

As per a Reuters report, Disney+ Hotstar has tested the enforcement of this policy internally and plans to implement it later this year. "Some people will be incentivized to buy their own subscriptions with new restrictions in place," one source told Reuters.

Netflix also recently revealed a new strategy to combat password sharing in India. The company has started sending warning emails to customers, highlighting that they should use their accounts within a single household only.

Why It Matters: Disney initially hoped that a lax policy on multiple device logins would attract subscribers who would eventually purchase their own accounts. Disney+ Hotstar, Netflix, Amazon, and JioCinema have all garnered significant popularity in India. Experts predict that by 2027, these services will help grow the Indian OTT market into a $7 billion (₹57,624 crore) sector.

The new restriction will also apply to its cheaper plan, limiting usage across two devices. Disney+ Hotstar led India's streaming market from January 2022 to March 2023 with a 38% share of viewership.