Max, the streaming service that features HBO, Discovery, and Warner Bros. properties, appears to be taking a page out of Netflix’s book on how to boost profits. Netflix experienced a boost in new subscribers after it implemented a controversial crackdown on password sharing on its platform last year, and Max has decided to follow suit by doing the same on its platform in the next few months, according to a new report from Bloomberg.
The report claims that not only will Max be expanding to different countries and regions such as France, Latin America and Australia within the “next 18 months,” it will also begin to narrow down on users who share their account passwords with others “later this year” with a full roll out in 2025.
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The move from Max comes after Warner Bros. Discovery (WBD) , its parent company, failed to impress investors despite boosting its direct-to-consumer subscriber count from its streaming services to almost 100 million last year, with the stock dropping nearly 15% since its earnings print, according to Yahoo Finance.
Also, in Warner Bros. Discovery’s fourth-quarter earnings for 2023, the company’s total revenues decreased by 7% compared to the same quarter the year before.
Netflix was the first streaming platform to crack down on password sharing to the dismay of many customers. In May last year, it began charging users $7.99 a month to share their account password with people outside of their households. After users blasted the company for the change on social media, even threatening to cancel their subscriptions as a result, Netflix ended up prevailing in the end as it gained an additional 30 million subscribers after the change took place.
It appears that other companies have been inspired by Netflix’s move as Disney’s streaming platforms Disney+ and Hulu are planning to enforce a similar change.
Last month, Hulu sent an email to customers warning them that it updated its terms of service agreement where it said that it was “adding limitations” to users sharing their account passwords to people outside of their household. Hulu claims that the new terms applied to new subscribers on Jan. 25, and for “prior or existing subscribers,” it will be effective on March 14.
Also, Disney announced during an earnings call on Feb. 7 that Disney+ will start charging users an unspecified “additional fee” to share passwords as soon as this summer.
“We want to reach as large an audience as possible with our outstanding content,” said Disney Chief Financial Officer Hugh Johnston during the call. “We’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base.
Password sharing is a very common practice that many streaming platform users like to take advantage of. According to a recent survey by Secure Data Recovery, 69% of Americans have used someone else's login credentials for a streaming service in the past, and 80% don’t see the practice as a form of stealing.
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