The streaming landscape is gearing up for change as Max introduces steps to curb password-sharing among subscribers. Starting later this quarter, the platform will roll out “soft messaging” regarding paid sharing, hinting at more robust measures that could unfold in 2025 and 2026.
During Warner Bros. Discovery’s Q3 earnings call, CFO Gunnar Wiedenfels emphasized that password-sharing restrictions are essentially a “price adjustment” that encourages users from different households to subscribe separately or pay a slight premium for access. While Max has expressed interest in addressing password-sharing before, this is the first time details have surfaced about the approach and timeframe for these changes.
Anticipated Rollout and Market Comparisons
Earlier this year in March, JB Perrette, Warner Bros. Discovery’s head of global streaming and gaming, hinted at the upcoming changes, noting that Max would tackle password-sharing “later this year and into 2025.” Thus far, Max’s approach mirrors that of Disney Plus, which introduced similar “paid sharing” prompts to subscribers months ahead of implementing its “extra member” options. Netflix also shifted to paid sharing last year, leading the way in this industry trend.
Wiedenfels did not dismiss the possibility of a future price increase for Max. He noted the service’s “premium nature” provides an opportunity to gradually adjust pricing, an approach Warner Bros. Discovery has been cautious about. In fact, Max’s last price adjustment occurred in June, affecting ad-free plans across the board.
Expanding Reach with Subscriber Growth
Max recorded a significant gain this quarter, adding 7.2 million new subscribers and boosting its global subscriber base to 110.5 million. CEO David Zaslav stated that Warner Bros. Discovery is focused on creating “more consistency” across its film and gaming divisions after the less-than-anticipated performance of “Joker: Folie à Deux.”
As Max tightens its policies, it’s clear that password-sharing crackdowns and paid sharing options are becoming more common in the streaming industry, reshaping how audiences interact with platforms. Max’s strategy could set a new standard, blending soft communication with a phased rollout, keeping subscribers informed while preparing for long-term shifts.
By Andrej Kovacevic
Updated on 7th November 2024