CEO of WBD Global Streaming: Max introduces “soft messaging” regarding password sharing

JB Perrette, CEO of Global Streaming and Gaming

Erik Grünwedel

December 3, 2024

Warner Bros. Discovery’s flagship direct-to-consumer streaming platform Max will begin rolling out a “soft notice” to existing subscribers about sharing their password with third-party users in a week, according to JB Perrette. CEO, Global Streaming and Gaming at Warner Bros. Discovery.

Speaking Dec. 3 at Wells Fargo’s 8th Annual TMT Summit in Rancho Palo Verdes, Calif., Perrette said Max currently operates in 65 markets worldwide, in addition to those currently operating in Asia Pacific will be introduced, increasing the streamer’s presence to 74 territories.

The DTC business achieved its first operating profit in the most recent fiscal quarter (ended September 30) with a subscriber base of more than 110 million subscribers worldwide. As Max wants to expand its global paying subscriber base, the streamer is following the Netflix principle by limiting usage by non-subscribers.

Perrette said Max will begin sending “soft messages” to select subscribers about sharing passwords with non-members in about a week, with third-party add-on membership options rolling out early next year.

“It’s an art and science of trying to figure out who’s actually sharing, versus who’s at their vacation home or on a business trip,” Perrette said, adding that filtering on usage is still a work in progress tighten the service.

“Once we get the data, we’ll start early messaging to people who we think are definitely at a higher level of usage … with some explicit and implicit signals,” Perrette said.

Starting in the second half of 2025 and continuing into 2026, the crackdown on password sharing will become a “more meaningful” revenue driver for both subscribers and advertising revenue, the CEO said.

“It won’t be Netflix, we haven’t been in the (streaming) market for 15 years, so I don’t want to overstate the magnitude of it,” Perrette said.

The executive said Max will look to build its global profile on the back of franchise series such as “The Penguin,” “Dune: Prophecy,” an upcoming series based on Stephen King’s “It” horror film “House of the Dragon.” “The White Lotus,” “The Matrix,” “The Last of Us,” and “Crazy Rich Asians,” among others.

In January, Max launches “The Pitt,” a fictional series that follows the daily lives of medical professionals at a Pittsburgh hospital as they juggle personal crises, workplace politics and the emotional toll of treating critically ill patients.

Perrette estimates the remaining Max addressable market for households with high-speed internet outside the U.S. is approximately 350 million, excluding China, India and Russia.

“We see a big international growth opportunity for us in the next few years,” he said.

To reach these new subscribers in a mature SVOD, Max is working extensively with third-party platforms to launch the service, including Comcast-owned Sky, Canal+ in France and Amazon Prime Video Channels.

According to Perrette, the plan aims to improve the economic profile of launching a standalone streaming service in a foreign market through partnerships with existing platforms.

“We want to get (Max) into the hands of as many people as possible without creating this economic cliff,” he said.

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