Starting in September, Warner Bros. Discovery will begin an aggressive crackdown on HBO Max password sharing, shifting from soft warnings to a mandatory system that requires users to pay an extra $7.99 a month to share their account with someone outside their household.
The message gets fixed: During a recent earnings call, WBD streaming head JB Perrette said the current "soft, cancelable messaging" will become "fixed," forcing users to take action. To enforce the new policy, the service uses account information, IP addresses, and device IDs to identify sharers who are not legitimate users.
A familiar script: WBD is taking a page from Netflix’s playbook, which saw a surprising surge in new subscribers after its own crackdown in 2023. Disney+ and Hulu have also implemented similar policies, turning what was once an industry blind spot into a new revenue stream.
Managing expectations: Perrette described the effort as being in the “first inning,” acknowledging that HBO Max likely won't see Netflix's explosive growth. He also admitted the service needs work to keep customers from leaving, saying, "We went from not good to good, but we’re still a ways to go in terms of feature set."
The era of casual account sharing is officially ending as major streaming services search for new revenue in a mature market. For users, it means another nudge toward paying for every service they use.
Also on our radar: Meanwhile, the crackdown isn't the only change coming to the service, as HBO Max is also reportedly showing more commercials on its ad-supported plan. The timing also coincides with major programming shifts, as the end of shows like And Just Like That... could give some users a reason to re-evaluate their subscriptions just as the new fees hit.
