MAX takes action on password-sharing
March 7, 2024
MAX, the Warner Bros Discovery SVoD service will start cracking down on people sharing passwords outside their household “starting later this year”, confirmed Jean-Briac Perrette, the company’s president and CEO of global streaming, while speaking at Morgan Stanley’s Technology, Media, and Telecom 2024 conference in San Francisco
“Restrictions on password sharing were inevitable – after Netflix’s reporting of increased revenue and subscribers, it would have been more surprising if other streamers decided against the move for their own purposes. We’ve seen that it’s not going to be detrimental to streamers’ growth because the demand for entertainment will always exist. If consumers are determined to consume their favorite shows, they’ll continue to opt for subscriptions whether that is a bundled option or a la carte. “
“Netflix is ahead of the curve when it comes to industry moves, and password sharing isn’t their only big win. The exclusive streaming of the SAG Awards on the platform demonstrates that live entertainment is shifting away from cable. With major players like WBD combining major media deals with significant cultural moments, streamers are making decisions that will benefit their bottom line. Password sharing restrictions are a way to ensure that they continue to increase revenue and draw customers away from cable. How can streamers make this more economically friendly for consumers? Tiered bundle offerings seem to be the latest initiative through mini bundles of platforms. Bundling alleviates some of the financial constraints consumers will face when having to decide between content needs. As we gravitate towards the future of ‘Cable 2.0’, streaming bundles will start to mirror the traditional high-value cable bundles we’re accustomed to today. This shift signifies a transformation in how content is packaged and delivered, driven by the industry’s quest for a stable, profitable model to replace the vanishing traditional cable bundle. The industry’s move towards these ‘mini bundles’ is just part of a broader evolution,” he concluded.