Warner Bros. Discovery is set to tighten its policies on account sharing by introducing a paid-sharing option on its Max streaming platform. According to Bloomberg, the company plans to allow subscribers to pay for "extra members" who can then have their own usernames and passwords. This initiative is designed to limit the widespread practice of sharing account credentials.
The concept mirrors strategies implemented by Netflix in 2023, which offered "extra member lots" for $7.99 each. This allowed subscribers to share their account with individuals outside their household legally. Similarly, Max aims to offer a more affordable option for adding "extra members," costing less than $9.99 each.
Max's current pricing structure includes a $9.99 per month ad-supported tier, with other options costing up to $19.99 monthly. The move to curb password sharing was hinted by Jean-Briac Perrette, CEO of Global Streaming and Games, during a Morgan Stanley conference last month. He mentioned that tackling account sharing would be a growth opportunity into 2025.
By the end of 2023, Warner Bros. Discovery reported having 97.7 million subscribers across its direct-to-consumer platforms, which include HBO, Max, and Discovery+. Perrette emphasized that reducing password sharing represents a "meaningful opportunity" to scale the company's business.
Reflecting on the industry's history, Perrette noted, "Netflix was in the market for 17 years. That means people are sharing passwords for 17 years. We’ve been in the market for four, if you count the HBO Max launch."
When Netflix implemented its sharing limits, it saw an increase in both paying subscribers and revenue. As of the first quarter, Netflix's global membership reached 269.6 million.
Following Netflix's example, other companies, including Disney, are planning to introduce similar measures on their platforms like Disney+. These changes are expected to appear this year.
Max, which combines content from HBO Max and Discovery+, launched last year and is available in various regions, including Latin America, the Caribbean, and the U.S. More expansions are anticipated throughout the year as the company seeks to enhance the profitability of its streaming services.