Be warned, all ye who watch House of the Dragon thanks to your parents’ Max account: A password-sharing crackdown is coming.
Warner Bros. Discovery, Max’s parent company, plans to launch the restrictions in late 2024, WBD’s head of global streaming and games, JB Parrette, said at Morgan Stanley’s Technology, Media & Telecom Conference on Monday. Details on the crackdown are scant, but the push toward paid sharing is expected to roll out more widely next year.
Max, formerly HBO Max, is just the latest streamer to look to password-sharing limitations to keep streaming viable. Netflix started cracking down on users sharing their passwords outside the household last year. Disney recently informed Disney+ and Hulu subscribers of plans to convert suspected account sharers to paid subscribers. Disney emailed customers in February letting them know that their terms of service would be changing and that the sharing of login information with anyone outside their household would be forbidden starting March 14. Netflix, similarly, rolled out its restrictions last year by emailing users suspected of sharing their login details and telling them users outside the household would be shut out.
These moves come as providers struggle to hang on to their user bases and streaming becomes an even more crowded field, forcing consumers to make tough choices about which services they can afford. Netflix, following a couple rough years, bounced back and saw a boost in subscribers and revenue late last year following its password crackdown.
Disney+ has been adding subscribers but struggling to hit profitability. Still, Disney CEO Bob Iger believes streaming can start making money by the end of 2024, thanks in part to its new ad-supported tiers and a combined Disney+/Hulu “one-app experience” coming this year.
Meanwhile, Max has changed shape repeatedly following the Warner Bros. merger with Discovery, which ultimately combined HBO Max and Discovery+ into one streamer. The move yucked the yum of longtime HBO Max fans, but it led WBD to become the first Hollywood heavyweight to turn a full-year profit from streaming.
Password-sharing crackdowns also come at a time when piracy is on the rise—something that’s keenly impacted WBD’s offerings. For years, HBO’s Game of Thrones was one of the most pirated shows on TV. More recently, The Last of Us and House of the Dragon have taken the top spots.