Warner Bros. Discovery’s Max Joins Netflix and Disney+ in Implementing New Password Sharing Restrictions
Warner Bros. Discovery’s streaming service, Max, is set to implement measures against password sharing, aligning with the actions taken by industry peers such as Netflix and Disney+.
JB Perrette, who leads WBD’s streaming and gaming globally, announced the plan during the 2024 Technology, Media & Telecom Conference hosted by Morgan Stanley in San Francisco. The initiative will launch later in the current year, with a broader implementation envisioned for 2025. Perrette highlighted the significance of this move for the company’s scale, stating at the conference, “We think, relative to the scale of our business, it’s a meaningful opportunity.”
This strategy emerges as Warner Bros. Discovery reports a reduction in its streaming losses to $55 million in the fourth quarter of 2023, a significant improvement from a $217 million loss the previous year. The company achieved a profit of $103 million for the entire year, reversing a $1.59 billion loss from 2022.
WBD anticipates a “modestly negative” EBITDA for its direct-to-consumer (DTC) segment in the first half of 2024, with profitability expected in the latter half. The company has set a goal of reaching $1 billion in DTC EBITDA by 2025. In the last quarter, the DTC division, which encompasses Max, Discovery+, and traditional HBO cable subscriptions, saw an increase of 1.8 million subscribers, reaching 97.7 million.
Last year, Netflix initiated a comprehensive approach to curb password sharing, starting with its implementation in the US and extending through pilot programs across various countries. Most notably, in India, Netflix introduced the ‘Household’ feature, which restricts account sharing exclusively to individuals residing in the same household. After the implementation of password-sharing restrictions, Netflix observed growth across various regions. The subscriber count in the United States and Canada rose by 1.17 million, while the Europe, Middle East, and Africa region saw a notable increase of 2.43 million subscribers. Additionally, Latin America and the Asia-Pacific region experienced significant gains, adding 1.2 million and 1.1 million subscribers, respectively.
Following the success of Netflix, Disney also announced its decision to enforce restrictions on Password-sharing. CFO Hugh Johnston revealed plans to offer new options for account holders to legitimize external users by mid-year. This includes a feature for adding external users to an account for a fee slated for release later in the year.Johnston shared, “Later this calendar year, account holders who want to allow access to individuals from outside their household will be able to add them to their accounts for an additional fee.” These changes will also extend to Hulu and ESPN+ subscribers, following modifications to the subscriber agreement, highlighting a growing trend among streaming services to regulate password sharing more strictly.
Ragul Thangavel
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
Holding an Engineering degree, Ragul's career took an unconventional turn when he discovered his passion for writing, leading him to begin his journey as a content writer.
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