Warner Bros. (WBD) , which owns popular streaming platform Max, is facing some major headwinds in its business that are draining the company’s pockets.

In the company’s third-quarter earnings report for 2024, it revealed that its total revenues declined by 4%, compared to the same time period last year.

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In its studios segment specifically, it faced a 17% year-over-year decline in total revenues which was partially due to lower box office income from recent movie releases such as “Beetlejuice Beetlejuice” and “Twisters,” and lower gaming and TV revenues.

Related: Max is making changes to your subscription you won't like

Warner Bros. also generated $632 million in free cash flow during the quarter, which is a 69% decline from the roughly $2 billion it had during the same quarter in 2023.

Max subscribers will soon pay more every month

Despite recent challenges, the company’s direct-to-consumer segment, which includes the performance of its streaming platforms Max and Discovery+, faced success by increasing its total revenues by 8% year-over-year.

For Max specifically, the company managed to add 7.2 million new subscribers in the third quarter, bringing its total global subscriber count to 110 million.

While the platform is successfully blossoming, Warner Bros. is planning to roll out some major changes to the streaming service that its subscribers may not like.

During a recent earnings call, Warner Bros. Global Streaming and Games CEO JB Perrette revealed that the company is planning to kick off a crackdown on password sharing on Max over the next few months.

“We will kick off some very soft messaging later this quarter around password sharing and that as we kick into ‘25 and into ’26 you’ll see more and more progress on that, which in effect is a form of a price rise as well as the asking members who have not signed up or multi-household members to pay a little bit more,” said Perrette during the call.

He also hinted that Max will soon undergo another price increase, even after it pushed two price hikes over the last two years.

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“We think the premium nature of our product in particular lends us to be - to have a fair amount of room to continue to push price. We've been judicious about it, but every price rise we've done so far the churn has actually been lower than we projected and expected and the retention continues to be strong,” said Perrette.