Upcoming Password Sharing Restrictions Proposed by Max This Year
Taking a Leaf from Netflix and Disney:
Looks like Max is gearing up to join the big leagues and put an end to password sharing among its subscribers, as per a report by Variety. The move is expected to take place later this year.
J.B. Perrette, the CEO of global streaming and games at Warner Bros. Discovery, casually mentioned this at the 2024 Morgan Stanley Technology, Media & Telecom conference, referring to it as a "growth opportunity."
With approximately 97 million subscribers, Max is currently trailing behind Netflix, Amazon Prime Video, and Disney+. It took a substantial hit last year after it dropped the "HBO" in its rebranding, causing a loss of nearly two million subscribers.
Netflix was in hot water with its subscribers when it began cracking down on password sharing back in 2022. Surprisingly, this turn of events paid off, with Netflix ending up with millions of new subscribers the following year. Since then, Netflix has introduced a popular ad tier and plans a subscription price bump soon.
Disney has yet to enforce its announced password sharing restrictions, but the Terms of Service updates hint that it's only a matter of time. When this happens, it might lead to a shake-up in households with shared accounts.
Perrette hinted that the crackdown would start later this year, with plans to continue into 2025. Given the popularity of shows like "House of the Dragon," summer might be the ideal time for Max to make its move, as fans gear up for the second season. The Game of Thrones franchise has always been a major draw for the service, and a disappointing last season coupled with the end of the show could have led to cancellations.
If Max follows in the footsteps of other streaming services and enforces password sharing restrictions, it could lead to a reduction in the subscriber base as some users may choose to cancel. However, it could also potentially increase revenue in the long run by converting shared users into individual subscribers. User experience will be key, and clear communication and smooth execution will be essential to maintain user satisfaction with the service.
In 2025, tech giants like Max might follow Netflix's lead and implement password sharing restrictions, similar to their counterparts such as Disney and Amazon Prime Video. This rebrand could result in temporary subscriber loss due to the crackdown, but long-term revenue increase may be possible by transforming shared users into individual subscribers. To ensure user satisfaction, smooth execution and clear communication will be crucial, especially as Max aims to rival streaming providers like Netflix by capitalizing on popular shows like "House of the Dragon". The net effect on Max's subscriber base and overall success will largely depend on the user experience and the timing of implementation during high-interest periods.
