Max Password Sharing Crackdown Is Coming

Warner Bros. Discovery said a password crackdown for its Max streaming service is coming later this year, joining competitors Netflix and Disney. TheWrap reports: JB Perrette, WBD’s CEO and president of global streaming and games, said the initiative would launch later this year with a broader rollout in 2025. “We think, relative to the scale of our business, it’s a meaningful opportunity,” Perrette said during Morgan Stanley’s 2024 Technology, Media & Telecom Conference in San Francisco on Monday. The push to crack down on password sharing comes as Warner Bros. Discovery narrowed its streaming loss to $55 million during its fourth quarter of 2023, down from a loss of $217 million a year ago. For the full year, it swung to a profit of $103 million, compared to a loss of $1.59 billion in 2022.

Looking ahead, WBD said its DTC business would have “modestly negative” EBITDA in the first half of 2024 before turning profitable in the second half. WBD is targeting $1 billion of direct-to-consumer EBITDA in 2025. In its fourth quarter, Warner Bros. Discovery added 1.8 million subscribers in its direct-to-consumer division for a total of 97.7 million. The DTC segment’s results include Max, Discovery+ and traditional HBO cable subscriptions. Parrette also discussed interest in transactional ads, notes Ars Technica. Per Perrette: “On the ad format size, we’ve made lots of improvements from where we were, but we still have a lot of ad format enhancements that will give us more things that we can go to marketers with, [like] shoppable ads [and] other elements of the ad format side of the house that we can improve.”