JB Perrette, CEO and president of global streaming and games at Warner Bros. Discovery, explained that the notifications will be ‘very soft’, but as 2025 and 2026 progress, the change in the use of user accounts will become more palpable. However, the manager did not specify when the policy will become effective and if the notifications will be global or will begin in some latitudes to see the effects it will have on the markets. When Max decides to apply modifications to his operation, he decides to start them in the US market.
“Until now we have been judicious on the issue of price increases. But we believe that the premium nature of our product in particular gives us a good amount of room to continue to drive the price and now we have thought that one way to do that is with password sharing,” Perrette said in a conference with analysts.
The manager explained that by applying the password ban, the effect of increasing prices is generated, as well as asking members who have not registered to register or pay a little more. “And you’re going to see that as an additional trick.”
Since its launch, after the merger between Discovery and Warner Bros. Discovery, Max was studying the possibility of avoiding shared accounts because it has become a common denominator in the industry to increase its user base and improve sales prospects.
For example, Netflix, who started this practice, has begun to capitalize on the account ban. In the third quarter of this year alone it added 5.1 million new subscribers, more than the projected 4.5 million, bringing total paid subscribers to 282.7 million.
One of the main challenges for streaming platforms is to get users to increase their average income (ARPU), and the way they consider this expense can grow is by avoiding sharing accounts.
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