Max Cracks Down on Password Sharing: What You Need to Know Before It’s Too Late!

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Warner Bros. Discovery is taking a stronger stance against unauthorized password sharing on its streaming service Max, particularly for users accessing accounts outside the primary household. During a recent earnings call, CEO JB Perrette discussed a multi-step plan that will initially encourage freeloaders to pay up, followed by stricter measures in 2025 and 2026. This move is part of an overall strategy to increase subscribers and revenue, following the lead of other prominent streaming platforms. To provide a legal option for account sharing, Max has recently introduced the “Extra Member Add-On” feature in the U.S., priced at $7.99 per month, enabling primary users to add an additional user residing outside their home. The full implementation of this feature is expected to take 12 to 18 months, giving current password sharers time to find alternative solutions.

As a movie enthusiast penning down my thoughts, I’d like to bring your attention to a shift in policy that HBO Max is planning. During their recent earnings call, Casey Bloys, the boss at HBO Max, hinted at an upcoming focus on password sharing. He explained that this change will unfold gradually, with subtle reminders initially, which will grow more prominent over time. This gradual transition aims to make the adjustment smoother for users. While he didn’t specify the exact scale of the opportunity, he did mention that this move could potentially boost both subscriber numbers and average revenue per user (ARPU). So, buckle up, fellow streamers, as we navigate this new chapter together!

The “Extra User Option” now accessible to U.S. retail subscribers, excluding bundle packages, empowers the main Max account holder to extend an invitation to one individual residing outside their household, enabling them to establish a personal, independent account with unique adult profile and login details. This additional user shares the same subscription for an extra $7.99 per month. The secondary user can stream on a single device concurrently and enjoys the advantages of the primary owner’s base plan. It is important to note that Max’s terms of service have been revised, stating that the company retains the right to adjust access or deactivate features to minimize the influence of account sharing outside the household or when they suspect misuse of your Max Account. To define a household, Warner Bros. Discovery will consider factors such as account and profile data, network and device information (including IP addresses, device IDs, and user activity), at their discretion.

Max Joins Growing List of Streamers Cracking Down on Password Sharing

Max’s decision to limit password sharing signifies a major trend across streaming services, as they transition from pursuing sheer subscriber expansion towards boosting profitability and maximizing revenue from their existing audiences. Leading the charge was Netflix, who initiated a widespread crackdown on password sharing in May 2023. In their new definition, a “Netflix Household” encompasses devices primarily used at the main viewing location, triggering alerts for users sharing accounts outside this household to either establish separate paid subscriptions or have the primary account holder pay an extra fee for additional members. While some initial worries about user resistance were present, Netflix reported positive subscriber growth after the changes, crediting the increase to successful conversions of password-borrowers into paying customers or add-on purchases.

In response to Netflix’s actions, other streaming giants like Disney have started taking steps to limit password sharing. Starting in early 2024, Disney+ and Hulu users in the U.S. started receiving notifications about revised terms of service that forbid sharing accounts outside the household. By September 2024, Disney rolled out a paid sharing program in the U.S. and various global markets, enabling users to add an additional member for an extra fee, much like Netflix and Max. Hulu followed suit with updates to its terms and enforcement of restrictions around March 2024. Max is now following this trend, aiming to emulate the financial achievements of its competitors.

What are your thoughts on Max’s proposal to be more firm when it comes to password sharing? Feel free to share your opinions in the comment section below!

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2025-05-09 12:52