Max to Follow Netflix’s Example, Will Crack Down on Password Sharing
By Movieguide® Contributor
Max is joining the bandwagon of password-sharing crackdowns.
The streamer will likely begin implementing restrictions this fall. This action follows Netflix’s success in implementing password-sharing restrictions.
“Netflix earned soaring numbers once they rolled out the password sharing crackdown, as people signed up for memberships in hopes of keeping the platform. Max, upon seeing this success, will probably follow a similar tactic to retain as many subscribers as possible later in the year,” MSN reported.
Variety reported on the major subscription boost Netflix found after implementing the rule.
“Netflix added 29.5 million net new subscribers in 2023, up from an annual average of 21 million in 2020-22, boosted by its global implementation of ‘paid sharing,’ a program that prompts users who are borrowing someone else’s account to sign up for their own plan or to have primary account holders add them as an ‘extra member,’” the outlet said.
Current Netflix rules allow subscribers to add a member to an existing account for less than $9.99/month. This feature allows users to create their own username and password and opt to go ad-free.
JB Perrette, head of global streaming and games at Warner Bros. Discovery, shared his thoughts on the crackdown earlier this year. Movieguide® reported:
“I’m conscious of not over-selling [the password crackdown] because you see Netflix’s success. But Netflix was in market for 17 years. That means people are sharing passwords for 17 years,” said JB Perrette, head of global streaming and games at Warner Bros. Discovery. “We’ve been in the market for four, if you count the HBO Max launch. And obviously, we’re not quite at the same scale, but relative to the scale of our business, it’s a meaningful opportunity.”
This change might be necessary for the streamer. Max saw numbers slow down last year as it lost nearly 2.5 million subscribers.
Another potential avenue to boost subscriptions would be to bundle Max’s services with other providers.
“During the company’s Q4 report, CEO David Zaslav explained that another avenue he believes could draw subscribers in the future is bundles,” Movieguide reported.
Those who password share their Max account should be aware that there may be consequences, as outlined by the streamer.
“According to Max’s terms of use, most recently updated Feb. 27, Warner Bros. Discovery reserves the right to ‘modify access or disable features, including for security reasons, to limit the impact of account sharing outside of your household or where we have concluded in our discretion that there has been misuse of your Max Account. If a suspension or termination occurs, you must stop using the Platform,’” Variety reported.
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