Highlights

• Max to implement anti-password sharing features in line with Netflix and Disney+.
• Full-scale password sharing crackdown planned for 2025, starting later this year.
• Expanding service to France, Latin America, and Australia within the next 18 months.
• Strategy aims to address slowing subscriber growth and rising churn rates.

Warner Bros. Discovery is setting its sights on an issue plaguing the industry: password sharing.

The company’s flagship streaming service, Max, which emerged from the merger of HBO Max and Discovery+, is poised to implement measures to curtail the sharing of passwords among its users, echoing steps already taken by streaming giants like Netflix, Disney+, and Hulu.

“We are confident of our growth opportunities ahead and maintain our strong conviction that Max will emerge as one of the top streaming services in the world,” said JB Perette, Max’s streaming chief, in a statement.

A Gradual Rollout with Global Ambitions

Max is not only expanding its crackdown on password sharing but also its geographic reach.

With plans to launch in France, Latin America, and Australia within the next 18 months, Max aims to align its operations with those of Netflix by introducing anti-password sharing initiatives starting later this year, with a full-scale implementation envisioned for 2025.

This approach is part of this recently growing trend among streaming services to protect their content and ensure that subscriptions are used within the confines of individual households.

Netflix led the charge last year by introducing a system that necessitates a device to connect to the home Wi-Fi network of the account holder at least once every 31 days, thereby limiting access to users within the same household.

Following Netflix’s lead, Disney+ and Hulu have also begun to notify users of impending restrictions on account sharing, with Disney+ announcing its intent to limit account sharing starting in March, shortly after Hulu issued a similar notice.

Now HBO Max is jumping on the same bandwagon.

Addressing Subscriber Growth and Churn

This crackdown on password sharing comes at a crucial time for the streaming industry, which has seen a notable slowdown in subscriber growth and an increase in churn rates.

According to Antenna, a subscription analytics platform, the growth of subscribers to premium subscription services has decelerated significantly, posting a mere 10.1% increase last year compared to 21.6% in 2022.

Moreover, the rate of churn, which indicates the number of subscribers canceling their plans, has nearly tripled since 2019, reaching 140.5 million cancellations in 2023—the highest in the last five years.

FAQs

What is Warner Bros. Discovery’s plan for combating password sharing?

Warner Bros. Discovery intends to roll out new measures on its streaming service, Max, to prevent password sharing, aligning its strategy with those of Netflix, Disney+, and Hulu, with a phased implementation set to start later this year and culminate in 2025.

Why is Warner Bros. Discovery cracking down on password sharing?

The crackdown on password sharing aims to secure subscriptions and ensure that they are utilized within individual households. This move seeks to protect content, enhance service profitability, and maintain a fair usage policy across its user base.

How will the password sharing crackdown affect Max subscribers?

Max subscribers might face new restrictions that limit their ability to share passwords with individuals outside their household. These measures will be introduced gradually, aiming to minimize disruptions while enhancing security and compliance.

When will the new password sharing policy take effect?

Warner Bros. Discovery plans to begin introducing anti-password sharing features for Max later this year, with a full rollout expected to be completed by 2025. Initial measures may start affecting users as the policy is phased in.

What are the expected outcomes of the password sharing crackdown?

The initiative is anticipated to curb unauthorized sharing, potentially leading to an increase in individual subscriptions. It also aims to address the recent trends of slowing subscriber growth and a significant rise in churn rates observed since 2019.

Also Read: Hulu and Disney+ Join Netflix in Password Sharing Crackdown: What You Need to Know

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