legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

## Warner Bros. Discovery’s Plan to Crack Down on Password Sharing

### AI legalese decoder: Helping Navigate Password-Sharing Restrictions

Max will become the latest streamer to cut down on password sharing, as Warner Bros. Discovery plans to start its crackdown in late 2024 into 2025. 

Speaking at the Morgan Stanley Technology, Media & Telecom conference, J.B. Perrette, president and chief executive global streaming and games at Warner Bros. Discovery, announced plans to limit password sharing, citing NetflixÔÇÖs crackdown, which he said was ÔÇ£implemented extremely successfully.ÔÇØ All of this is part of WBDÔÇÖs several-part plan to build streaming profits.

“WeÔÇÖre going to be doing that starting later this year and into ÔÇÿ25, which is another growth opportunity for us,ÔÇØ Perette said of the password-sharing crackdown.┬á

Asked how big of a revenue opportunity the password-sharing crackdown represents, Perette said itÔÇÖs ÔÇ£a meaningful opportunity,ÔÇØ but was cautious on ÔÇ£overselling itÔÇØ given given the comparison of NetflixÔÇÖs 260 million subscribers and longer history to MaxÔÇÖs 97.7 million.

ÔÇ£IÔÇÖm conscious of not overselling because you see NetflixÔÇÖs success. Netflix was in market for 17 years. That means people were sharing passwords for 17 years. WeÔÇÖve been in the market for four, if you count the HBO Max launch, and obviously weÔÇÖre not quite at the same scale. But we think, relative to the scale of our business, itÔÇÖs a meaningful opportunity.ÔÇØ

WBD posted a full-year streaming profit for 2023, a rarity among the Hollywood media conglomerates, but in the fourth quarter, the streaming segment posted a loss of $55 million in adjusted earnings before interest, taxes, depreciation and amortization, compared with a year-ago loss of $217 million. 

The goal is to maintain a consistent profit in this segment, which Perette said the company believes it can achieve through further globalization, given that 80 percent of the companyÔÇÖs revenue is still based in the U.S., as well as broadening the advertising tier, which launched in the U.S., into Europe and Latin America.┬á

Additionally, he pointed to an improving content slate over the next 18 to 24 months, which includes season two of House of the Dragon in June and next year, season two of The Last of Us, the second season of Euphoria, and the third season of The White Lotus.

ÔÇ£Unfortunately, we launched Max in the U.S. and in the eight months following, for a variety of reasons ÔÇö some that we knew about, some related to the strike ÔÇö we went into probably the lightest content slate weÔÇÖve ever had,ÔÇØ he said.┬á

While Netflix was the first streamer to enact a password crackdown, which helped translate to a surge of 13 million new subscribers in the most recent quarter, Disney has also said it will start to enact a password-sharing policy. 

Disney has already updated its subscriber agreement for Disney+, as well as Hulu, to ban account sharing for new subscribers starting Jan. 25, and for existing subscribers starting March 14. And last month, Disney CFO Hugh Johnston said that starting this summer, Disney+ account holders will be ÔÇ£presented with new capabilitiesÔÇØ that allow account-sharers to start their own subscriptions.┬á

AI legalese decoder can help individuals understand the legal implications of the password-sharing crackdown by Warner Bros. Discovery and assist in navigating new policies and procedures.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link