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Discovery Max (formerly HBO Max) is next to crack down on password sharing

Mar, 06, 2024 Hi-network.com
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Netflix started it, Disney+ followed, and Hulu wasn't far behind. One by one, major streaming services are taking action to stop the common practice of password sharing.

And now another one has joined the fight.

Speaking at the Technology, Media & Telecom Conference on Monday, Warner Bros. Discovery CEO JB Perrette said that Discovery Max (formerly known as HBO Max) would soon start cracking down on password sharing. 

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Nothing has officially been communicated directly to subscribers yet, but these comments were made publicly, so an official notice is probably imminent.

"We think, relative to the scale of our business, it's a meaningful opportunity," Perrette said, going on to call it a "growth opportunity." He pointed out that Netflix was the inspiration behind the decision, noting that "Netflix has implemented it extremely successfully. We're gonna be doing that starting later this year and into '25."

What he said about Netflix is true. After initial pushback from customers, many of whom said they were done with the service, the streaming giant saw a record number of signups in the months after they stopped password sharing. 

Like other services, Discovery Max will allow customers to add members from outside their household for a small fee.

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An exact date for the new policy wasn't given, but Perrette mentioned that his company likely wouldn't see a financial impact until "the back half of calendar 2024." Given that timeframe, it would seem that the crackdown is coming in the next few months.

Perrette also discussed how advertising may soon change on the streaming service. A number of "ad format enhancements" are in play, he said, including shoppable ads -- something Hulu has done for quite a while and Disney+ started exploring a few months ago.

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