HBO Max’s parent company, Warner Bros. Discovery (WBD), has announced new price increases for its streaming services in the United States. New and existing subscribers will pay more per month across all the available plans from November 20, which is the second price increase by the platform in less than 18 months.
The company stated that the price hikes aim to counteract the slowdown in subscriber growth and offset the rising costs of producing original content.
Here are the new prices:
- Basic plan (with ads): Raising by $1, from $9.99 to $10.99 a month.
- Standard plan: Rising by $1.50, from $16.99 to $18.49 a month.
- Premium plan: Rising by $2, from $20.99 to $22.99 a month.
WBD said the price increases will be effective immediately for new subscribers, while current subscribers will have the changes reflected in their November billing cycle.
The price hike is the latest, as major rivals Netflix, Disney+, and Apple TV+ have all increased subscription prices over the last year, indicating that streaming services are under increasing financial strain.
Quality content costs money
HBO Max has long been known for having a strong lineup of award-winning content, including Succession, Game of Thrones, The Pitt, and Peacemaker. Despite the price hikes, WBD CEO David Zaslav defended the decision, saying that the service was “undervalued” compared to the quality of its programming.
“We don’t try to be everything to everybody,” Zaslav said. “We are focused on quality, and that is true in film, TV, and streaming. That allows us to charge more.”
Zaslav’s comments mark a pivot in the streaming industry, where most players now prefer profitability to manic subscriber expansion. As the expenses of creating hit series and blockbuster movies continue to rise, the platforms are seeking ways to maintain revenue without sacrificing quality.
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WBD spurns paramount’s $57 billion offer
The price changes come as WBD is working through another major business choice — the rejection of a $57 billion takeover offer from Paramount Skydance, according to The New York Post.
The offer, led by Paramount CEO David Ellison, was said to have proposed WBD shares at $24 per share but was turned down as too low. It is the third rejection of Ellison’s offers, though it is said WBD’s board would be open to higher offers in the future.
In response to the report, WBD stock jumped nearly 12% to $20.44 per share, in an indication of fresh investor hunger for the potential value of the company.
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WBD’s future plans and market value
WBD is mulling “strategic alternatives”—including spinoffs or sales of parts of its business—after receiving several unsolicited acquisition bids. The company’s leadership is believed to believe its assets are worth $30 per share or more, valuing the entire company at more than $70 billion.
Those assets boast the world’s top movie studio, the No. 3 streamer, and cornerstone media brands such as HBO, CNN, and DC Comics.
In the near term, WBD will spin HBO Max off from its cable business in April, a move that will render the platform more independent and more appealing to investors.
What this means for subscribers
While a few extra dollars a month might not seem like a lot, the increases signal an accelerating trend in the streaming world — pricier prices and fewer new subscriptions. In a market with so many services competing for eyeballs, customers may soon have to start making some tough choices about which memberships are worth keeping.
For HBO Max fans, the good news is that the platform’s signature storytelling and high-quality shows aren’t going anywhere. The bad news? You’ll be paying a little more to enjoy them.
