Max Users Getting Hit With Password Crackdown
In an unsurprising turn of events, Max will be cracking down on password sharing later this year. Warner Bros. Discovery CEO JB Perrette is excited about the prospect because it’s a new opportunity for growth that has proven effective for Netflix, who saw tens of millions of new subscribers for spearheading the initiative across their streaming platform in 2023. Though we can’t say for certain that Max will pull the same kind of numbers, it’s safe to assume that customers will sign up for their own Max accounts if they want to continue watching their favorite movies and series without using somebody else’s password.
The Rise Of Streaming Services
As streaming services like Max continue to look for ways to boost revenue, customers can’t help but point the blame at Netflix for finding a new way to charge subscribers for content by cracking down on password sharing. By the same token, we were allowed to share passwords with our familiar something for so long that the current business model is unsustainable. In other words, revenue has to come from somewhere, and the most logical place to find it is through new subscribers who no longer have access to a shared account.
Max Following The Netflix Strategy
As of this writing, we don’t know exactly how Max will implement and enforce their upcoming password crackdown. The reasonable assumption to make is that they will mirror the Netflix model in which users outside of the primary subscriber’s household can stay on the original account if the account holder is willing to shell out an extra $8 a month on their behalf. Following this logic, if the primary user doesn’t want to spend money to keep access open for other users, then the other user will have to sign up for their own subscription.
Ad-Tiers
Perrette also hinted that Max would introduce transactional ads to the streaming platform, which will help boost revenue along with the password crackdown. Streaming services like Hulu and Amazon Prime Video have pulled in a significant amount of revenue from their ad-supported tiers. Additionally, Warner Bros. Discovery is planning to launch a new sports-streaming service with Fox and Disney, which means that it’s only a matter of time before customers will be considering a variety of bundle packages that best suit their needs.
Streaming Resembles Cable
As streaming services like Max adopt similar policies involving password sharing, tiered bundle packages, and ad-supported content, customers can’t help but notice that their efforts to pick and choose what services they subscribe to are more closely resembling cable television. With the price of ad-free streaming slowly but surely climbing, users are gravitating en masse toward their ad-supported counterparts. For context, Netflix’s ad-supported tier has over 15 million monthly active users worldwide.
The Need For Quality Programming
It will be interesting to see how Max’s user base will shift in the coming year with the password crackdown and the introduction of transactional ads. While companies like Netflix have spent years building their loyal subscription base, HBO Max has only been around since 2020, and its current iteration, Max, has only been around for less than a year. But if they keep offering programming people want to watch, their efforts will lead to a stronger bottom line.
