HBO Max is seemingly too low-cost, in line with high exec

It is no secret that streaming prices have elevated considerably recently. Streaming giants like Netflix, Disney+, Apple TV+, YouTube TV, Peacock, and Paramount+ have all raised their prices over the previous yr or so, and HBO Max, which lately rebranded after being referred to as Max for a few years, has additionally carried out the identical. Now, it seems like HBO Max’s costs might go up much more quickly.

In line with the Hollywood Reporter, David Zaslav, CEO of Warner Bros. Discovery, stated he believes there is a chance to lift HBO Max’s value even additional. Zaslav made these remarks at a Goldman Sachs Communacopia Expertise Convention, the place he expressed that HBO Max’s premium content material justifies a better value than it at the moment fees.

“The truth that that is high quality — and that’s true throughout our firm, movement image, TV manufacturing and streaming high quality — all of us assume that provides us an opportunity to lift costs,” Zaslav stated. “We expect we’re method underpriced.” It is unclear when a value hike may occur, although. As Zaslav stated, “we will take our time.”

HBO Max’s final value hike was in 2024

A password-sharing crackdown is imminent

The final time HBO Max raised its costs was in 2024, when it was nonetheless referred to as Max. The usual ad-free plan elevated to $17 a month, a $1 improve, and its premium 4K ad-free plan rose to $21 a month, additionally a $1 improve. The ad-supported plan stayed on the similar value of $10 a month.

For comparability, Netflix’s customary ad-free plan at the moment prices $18 per 30 days, whereas its Premium 4K plan is $25 per 30 days. Beforehand, the usual ad-free plan was $15.50, and the Premium 4K plan was $23 per 30 days, till Netflix increased its prices in January this yr.

Because it at the moment stands, HBO Max is barely cheaper than Netflix, which is why Zaslav could also be signaling that it’s “underpriced.” Along with doubtlessly elevating costs, Zaslav additionally commented on password sharing, saying that HBO Max is “going to start to push” on the difficulty extra. Final yr, Warner Bros. Discovery introduced it might start cracking down on passwords sharing in phases, starting in 2025 and persevering with by way of 2026.

I’ve to confess, Zaslav’s remark strikes me as considerably unusual. I’ve by no means seen the CEO of a streaming service brazenly admit {that a} value hike is important. Shoppers are already cautious of streaming prices at present, so a CEO brazenly saying he sees “an opportunity to lift costs” may make some folks uneasy. Nonetheless, when evaluating HBO Max to Netflix, I perceive why Zaslav most likely made these feedback, particularly if his aim is to convey HBO Max’s pricing consistent with Netflix. It would even be fascinating to see whether or not HBO Max first cracks down on password sharing after which raises costs, or raises costs first and later targets password sharing. Both method, persons are prone to be rightfully upset.