The House of the Dragon series logo displayed on a phone screen and the HBO Max website can be seen in this illustrative photo taken on August 16, 2022.
Jakub Porzycki | Nurphoto | Getty Images
Warner Bros. Discovery raises HBO Max’s monthly price by $1 as the company looks to continue investing in content and user experience.
The company announced on Thursday that the price of the ad-free HBO Max tier would increase from $14.99 to $15.99 per month, the first price increase for HBO Max since its launch in May 2020. The Rate increase will take effect for existing subscribers in their next billing cycle. or on November 2nd
The price hike comes ahead of Warner Bros. Discovery launching its combined HBO Max and Discovery+ streaming service in spring 2023. The merged platform will be called Max.
Warner Bros. Discovery executives have said there’s room for growth when it comes to the price of streaming services, and the company intends to make its streaming business profitable in the near future.
“There is no doubt that these products are way too cheap,” Warner Bros. Discovery CFO Gunnar Wiedenfels said during a conference earlier this month. “And I think that was partly the capital market-driven phase of the land grab. You couldn’t lose enough money and you couldn’t gain subscribers fast enough. I think that’s behind us.”
The company has cut costs, such as spending on HBO Max’s original series, to make streaming viable. It also tends to have a hefty debt load stemming from Discovery’s acquisition of Warner, which closed last year. Warner Bros. Discovery’s goal is to reach $1 billion in streaming revenue by 2025.
The company has also worked to improve the user experience while rebuilding the entire app.
“We’re going to release a great product from a consumer experience perspective, and frankly that’s the biggest obstacle for HBO Max right now. The experience isn’t where it should be,” Wiedenfels said at this month’s conference.