By George Glover

Warner Bros. Discovery stock was rising Wednesday after the media and entertainment company revealed a new feature for its Max streaming service that sets the stage for a password-sharing crackdown.

Warner Bros. said late Tuesday that it would roll out Extra Member Add-Ons for Max, allowing users to add someone who doesn't live in their household on their account for an additional $7.99 a month.

Shares climbed 2.6% to $8.16 ahead of the opening bell. Futures tracking the S&P 500 were up 2.2%.

The feature is "designed to help viewers with a new way to enjoy our best-in-class content at an exceptional value, and offer subscribers greater flexibility in managing their accounts," the conglomerate's CEO and President for global streaming and games JB Perrette said in a statement.

The move could pave the way for Max to clamp down on password sharing outside of the household. Similar changes made by Netflix a couple of years ago have helped boost the streamer's revenue, sparking a rally that has lifted its shares to a record high.

Some investors might question the timing of this move, though: Warner Bros. is pushing for extra revenue at a time when forecasters are worried that U.S. President Donald Trump's tariff plans could drive up inflation and cause consumers to cut back on spending. If that happens, there's a chance some users could decide a Max account isn't worth the money if they can't share it, and cancel their subscription altogether.

Write to George Glover at george.glover@dowjones.com

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April 23, 2025 07:19 ET (11:19 GMT)

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