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

It is no secret that streaming prices have elevated considerably currently. 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 just lately rebranded after being known as Max for a few years, has additionally completed the identical. Now, it appears to be like like HBO Max’s costs could 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 Know-how Convention, the place he expressed that HBO Max’s premium content material justifies the next value than it at present 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 offers us an opportunity to boost costs,” Zaslav stated. “We predict we’re method underpriced.” It is unclear when a value hike would possibly 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 known 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 commonplace ad-free plan at present 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 yr.

Because it at present 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 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 at present, so a CEO overtly saying he sees “an opportunity to boost costs” would possibly make some folks uneasy. Nonetheless, when evaluating HBO Max to Netflix, I perceive why Zaslav in all probability made these feedback, particularly if his aim is to carry HBO Max’s pricing in keeping with Netflix. It would even be attention-grabbing 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, individuals are more likely to be rightfully upset.