Max is taking its first steps to combat password sharing, starting next week with a soft rollout of warnings to suspected account violators. Warner Bros. Discovery’s streaming division is introducing a gradual approach, focusing initially on “early, gentle messaging” for users who exhibit signs of excessive or unusual account activity.
Speaking at a Wells Fargo tech and media conference, JB Perrette, a Warner Bros. Discovery streaming executive, outlined the plan. The initial phase involves identifying potential account sharers and delivering notifications rather than immediate restrictions. By early 2024, however, Max plans to introduce a feature that will allow account holders to purchase additional member slots, enabling shared usage through official channels.
To support this transition, Max will tighten its detection algorithms, improving its ability to pinpoint non-household users. While specific details about pricing for extra members are not yet available, Max is likely to align its strategy with industry peers. Disney+, for example, charges between $6.99 and $9.99 for extra users, while Netflix sets its price at $7.99 per month.
The streaming industry’s shift toward stricter password-sharing policies stems from Netflix’s impressive recovery following its 2022 subscriber losses. Netflix’s implementation of paid sub-accounts not only curbed freeloading but also drove substantial growth. As of the latest quarter, Netflix boasts 282.7 million subscribers globally, an increase of five million, with revenues reaching $9.83 billion and a robust 30% operating margin.
Max’s move signals a broader acceptance of password-sharing crackdowns as an industry norm. While these changes may frustrate users accustomed to sharing accounts for free, the introduction of paid sharing options ensures a more sustainable model for streaming services, aligning with industry leaders like Netflix and Disney+.