Mar 5, 2024,04:14pm EST
Later this year, Max is poised to crack down on password sharing, following the footsteps of industry leaders like Netflix, Disney+, and Hulu. This move was revealed by JB Parrette, Warner Bros. Discovery’s head of global streaming and games, during Morgan Stanley’s Technology, Media & Telecom Conference, as reported by Wired.
Max currently offers three subscription plans priced at $9.99, $15.99, and $19.99 per month. The upcoming restrictions on password sharing are seen as a “meaningful opportunity” by Parrette, according to The Wrap. A broader enforcement of these restrictions is expected to roll out in 2025.
The crackdown on password sharing is part of Warner Bros. Discovery’s strategy to mitigate streaming losses, which significantly decreased to $55 million during the fourth quarter, down from $217 million in the same period the previous year.
Netflix, which implemented password sharing restrictions before the third quarter of last year, saw substantial growth, adding 30 million net users by the end of the year and achieving its strongest financial performance to date in terms of revenue and net income.
Disney+ and Hulu are also joining the password sharing crackdown, with Disney+ subscribers set to lose access to shared passwords by March 14.
In the backdrop, Warner Bros. Discovery shares have experienced a significant decline, trading at nearly half their value compared to last year.
Password sharing has been a popular practice among streaming platform subscribers, particularly as subscription prices have increased across various platforms. However, the implementation of price hikes and password sharing restrictions has ultimately been beneficial for streamers like Netflix, which reported record revenue of $33.7 billion in 2023.