Last year, one of the major online streaming platform Netflix begin password sharing crackdown on users. It was ultimately followed by a price hike for different subscription tiers. Other streaming platforms followed this pattern of price increase. However, there were few reports about the adoption of the password sharing crackdown.
Recently, some of the streaming services: Hulu and Disney Plus announced their crackdown on password sharing. As of now, there is another addition to the list: Warner Bros. Discovery’s Max (formerly known as HBO Max). Restrictions on different streaming services, such as warnings and account suspensions, apply to users who share their accounts with anyone outside of their household.
According to TheWrap’s report, Mr. JB Perrette, the CEO of Warner Bros. Discovery, password sharing crackdown is a growth opportunity. It will go into effect later this year and will continue next year. We assume you won’t be able to share your Max account with outsiders after the crackdown is over. It’s unclear at this time if Warner Bros. Discovery’s subsidiary Discovery Plus will also be subject to the crackdown. Since Discovery runs alongside Max.
According to the report, the company is considering additional ad formats for its subscription services. Transactional ads are the ads that make you want to buy something right away rather than enhancing your brand image. Such ads have been already tested by some streaming services. We can expect them to arrive to Max in the future. The report claims that more revenue is generated per user via ad-supported subscriptions as compared to solely relying on ad-free subscriptions.
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