HBO Max is outwardly too low-cost, based on 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 yr or so, and HBO Max, which not too long ago rebranded after being referred to as Max for a few years, has additionally accomplished the identical. Now, it appears like HBO Max’s costs could go up much more quickly.

Based on the Hollywood Reporter, David Zaslav, CEO of Warner Bros. Discovery, mentioned 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 a better value than it at the moment 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 assume that provides us an opportunity to boost costs,” Zaslav mentioned. “We expect we’re means underpriced.” It is unclear when a value hike would possibly occur, although. As Zaslav mentioned, “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 enhance, and its premium 4K ad-free plan rose to $21 a month, additionally a $1 enhance. 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 will start cracking down on passwords sharing in phases, starting in 2025 and persevering with via 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 important. Customers are already cautious of streaming prices in the present day, so a CEO overtly saying he sees “an opportunity to boost costs” would possibly make some individuals uneasy. Nonetheless, when evaluating HBO Max to Netflix, I perceive why Zaslav in all probability made these feedback, particularly if his objective is to deliver HBO Max’s pricing in keeping with Netflix. It’ll 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 means, persons are prone to be rightfully upset.