Max ‘copies’ Netflix and will also ban password sharing

A Max, the new name for the HBO Max platform, has barely arrived and will soon implement a new feature that will displease many users. We are talking about the ban on account sharing.

Just as they did the Netflix and Disney+, Max’s intention is to follow the trend, aiming to improve revenue.

The CEO of Warner Bros. Discovery’s JB Perrette said a billing system will be created for shared accounts.

According to the executive, the expectation is that the new product will begin to operate widely from 2025. Now, we just have to know what the customer’s reaction will be.

Max wants to end password sharing

Max started operating in Brazil on February 27th – Image: Reproduction

The news was exposed by Perrette, during JP Morgan’s Technology, Media and Telecom conference, which took place on March 4th. For him, this is a significant opportunity.

Netflix’s experience, in a way, became an example in the market. At first, there was a significant cancellation of subscriptions, but then the numbers started to grow again.

What has been proven is that the limitation of password sharing or increasing the subscription fee to maintain the benefit does not harm streaming platforms.

This has, in fact, been a strategy by the services to pressure the user to choose the best option: cancel the subscription or pay a little more.

The second alternative has been accepted by many people, which contributes to an increase in platform revenue.

Max’s challenge ahead: generating profit

A Max has a big challenge ahead. After recording a loss of US$55 million in the last fiscal quarter, the company intends to reverse the situation and close the year with US$103 million in profit.

One of the plans that go in this direction has to do with market expansion. The platform, which recently arrived in Latin America – debuted in Brazil on February 27th – will soon make its debut in Europe, in countries such as France and Belgium.

Regarding password sharing, Max has not yet clarified how it intends to implement the extra charge or limit the resource.

Netflix, for example, adopts a very practical control measure: it requires users to connect to the same local network once every 31 days.

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In addition to it, the Disney+ and Hulu also frequently check users’ IP addresses.

In the case of Netflix, the strategy was so successful that the company is already considering a further increase in the subscription fee.