HBO Max is outwardly too low cost, in keeping with prime 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 12 months or so, and HBO Max, which just lately rebranded after being referred to as Max for a few years, has additionally accomplished the identical. Now, it appears to be like like HBO Max’s costs might go up much more quickly.

Based on the Hollywood Reporter, David Zaslav, CEO of Warner Bros. Discovery, stated he believes there is a chance to boost 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 the next value than it presently expenses.

“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 suppose that provides us an opportunity to boost costs,” Zaslav stated. “We predict 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 presently prices $18 monthly, whereas its Premium 4K plan is $25 monthly. Beforehand, the usual ad-free plan was $15.50, and the Premium 4K plan was $23 monthly, till Netflix increased its prices in January this 12 months.

Because it presently 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 12 months, Warner Bros. Discovery introduced it could 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 overtly admit {that a} value hike is critical. Shoppers are already cautious of streaming prices right this moment, so a CEO overtly saying he sees “an opportunity to boost costs” may make some individuals uneasy. Nevertheless, when evaluating HBO Max to Netflix, I perceive why Zaslav most likely made these feedback, particularly if his purpose is to deliver HBO Max’s pricing consistent with Netflix. It is going to 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.