A new report reveals that Max will be the next streamer to crack down on password sharing. First launched in 2020, Warner Bros.’ streaming service has steadily become more popular over the last few years, with users turning to the platform to watch HBO series both new and old, as well as a library of other movies and TV shows. Rebranded to just Max in 2023 following the Warner Bros. and Discovery merger in 2022, the service had previously been unaffected by the password-sharing crackdown measures instituted by both Netfilx and Disney Plus.
According to Lucas Shaw’s Bloomberg newsletter, Max will start cracking down on password sharing later this year. The measure will continue through 2025 as Warner Bros. Discovery CEO David Zaslav attempts to make the streaming service more profitable.
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Why Streaming Services Are Cracking Down On Password Sharing
The Streaming Landscape Is Changing
Starting in May 2023, Netflix started rolling out measures that prevented users from sharing passwords. These measures didn’t affect all users all at once, and the slower rollout seemingly prevented a mass uproar. Disney then took a similar approach, confirming last year that its own crackdown on password sharing would start in 2024. The House of Mouse’s crackdown is now officially slated to start rolling out this summer.
While preventing password sharing is undoubtedly frustrating to consumers who engage in the practice, from a business perspective, it clearly works. After instituting measures to prevent password sharing, Netflix reported a growth in subscribers of 8.8 million in the third quarter of 2023, exceeding expectations. The crackdown on password sharing is part of a larger attempt by streaming services like Netflix, Disney Plus, and Max to increase profitability.
The streaming boom saw companies investing billions of dollars on content to bolster the libraries of their respective services to achieve scale. As many services saw diminishing returns from that approach, however, the model has shifted to one that prioritizes profitability. In addition to password sharing, streaming services like Netflix and Disney Plus have also increased prices as they attempt to more aggressively monetize their existing subscriber base. Max‘s password sharing crackdown, then, is part of larger evolution in the streaming landscape, and further changes are likely to come.
