Max adds ‘extra member’ option — that’s more expensive than Netflix’s

Recently-rebranded Max has launched its own version of the “extra member” program Netflix pioneered two years back.

The “Extra Member Add-On” is priced at $7.99 a month for all membership tiers, which is $1 more than what Netflix charges. It’s also a buck more than the base tier of the Disney+ and Hulu extra member program that came after Netflix’s launch.

Initially available to U.S. subscribers, this means Max has joined the bandwagon of trying to crack down on account and password sharing that cuts into revenues.

While it’s hard to estimate just how many people are sharing accounts on streamers, it had largely become a “norm” in the streaming industry until Netflix began offering the add-on program.

Netflix, as the first major streamer to offer this option, saw positive growth from the program, and it’s likely other streamers were at least partially taking a wait-and-see approach before delving into a similar offering.

As mentioned, Disney+ and Hulu also offer an option to do this, with the price going to $9.99 a month for premium subscribers. So far, Netflix and Max have opted to steer away from a tiered pricing model for add-on accounts.

Like other streamers, Max has also added the ability to transfer data such as watch history and ratings from accounts associated with an adult user to the separate add-on plan, which also gets its own username and password.

In some ways, the programs are reminiscent of the “amnesty” programs cable companies used to offer people found to be splitting cable lines to share the signal among unauthorized TVs in the same household or even with neighbors. 

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While the streamer ultimately doesn’t end up collecting the same amount of revenue as if a person purchased an entirely new subscription, the practice does bring in more money and also could be seen as a way to build goodwill among viewers (including the ones who essentially end up getting a service for free or a reduced rate) and even potentially avoiding cancellations.

Other factors that likely make the lower rate make sense include that there is a lower cost to “acquire” that add-on account, since the user is already familiar with the brand. There could also be potential savings with overhead costs such as billing, since the parent account still pays for extra members’ plans. In addition, advertising from extra accounts could also help supplement revenue, though this is not true if the original subscriber has an ad-free plan.

To help limit further abuse, streamers also only allow one primary account to have a single add-on member.

Most extra member offers are not valid on bundles, which typically already represent a discounted rate. It’s also typically not possible to add extra members to free accounts that come with phone plans or other offers. In addition, accounts not billed directly by the streamer, such as through an Apple account, are also typically not eligible (and shifting users who want an extra member away from third-party billing is likely to save additional billing costs since most of these payment services take a cut of the subscription price).