Warner Bros. Discovery is looking to follow in Netflix’s footsteps with a crackdown on password sharing, according to CEO and President of Streaming and Games J.B. Perrette.
The streaming head commented on the studio’s upcoming approach during a conversation at a Morgan Stanley event. He referenced Netflix’s efforts in the field of password sharing when stating that Max subscribers will be faced with similar practices later this year. Details on how Max will combat password sharing are a mystery, but it sounds like the plan is to begin in 2024 and continue to crack down in 2025.
“We’re launching in a bunch of European markets as we go into the second and third quarter,” Perette said. “And password-sharing crackdown, which, obviously, Netflix has implemented extremely successfully. We’re going to be doing that starting later this year and into ‘25, which is another growth opportunity for us.”
Max’s goal with its efforts to eliminate password sharing is to bring up its subscriber numbers. The idea is that, as sharing is phased out, there will be a greater opportunity to convert sharers into paying Mac members.
“You see Netflix’s success, but Netflix was in market for 17 years. That means people were sharing passwords for 17 years,” Perrette added. “We’ve been in the market for four if you count the HBO Max launch. Obviously, we’re not quite at the same scale, but relative to the scale of our business, it’s a meaningful opportunity.”
Warner Bros.’ decision to hit homes with limitations on the money-saving practice isn’t much of a surprise. Netflix seems to have started a trend, as it hasn’t been shy when it comes to the success it’s seen with password-sharing crackdowns. In October 2023, the streaming giant boasted massive subscriber growth in the wake of its new strategy. The move still seems to be going well for the company as of January of this year, too.
Disney is another company looking to up subscriber numbers with tighter restrictions. The company is primed to begin its account-sharing crackdown initiative this year, as it promised to bring the hammer down on Disney+ subscribers this summer. Max is only the latest the join the crowd, and it may not be the last.
A password-sharing crackdown might send a chill down the spine of subscribers who are looking forward to Max’s 2024 and 2025 offerings. Most notably is House of the Dragon Season 2, which we recently learned is set to arrive this June. The Last of Us Season 2, which already has a stacked cast, is also in the pipeline to premiere sometime next year.
Perrette also teased a new future for Warner Bros.’ games division. He says the company will begin focusing more on free-to-play and live-service projects, with players likely to see these changes arrive in the next few years.
Michael Cripe is a freelance contributor with IGN. He started writing in the industry in 2017 and is best known for his work at outlets such as The Pitch, The Escapist, OnlySP, and Gameranx.
Be sure to give him a follow on Twitter @MikeCripe.
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