HBO Max likely to get pricier and password-sharing crackdown — Zaslav signals price hikes

David Zaslav, CEO of Warner Bros. Discovery, told attendees at the Goldman Sachs Communacopia + Technology Conference that HBO Max is “way underpriced” and that the company sees “a chance to raise prices” thanks to the strength of its content across film, TV and streaming.

Key points

• Zaslav said the company believes HBO Max can charge more because of high-quality content across its platforms.
• Current U.S. pricing (as referenced): Basic with ads — $9.99/month; Premium (ad-free) — $20.99/month.
• Warner Bros. Discovery has signaled plans to crack down on password-sharing, aiming to close loopholes and “begin to push on that.”

What this means

Price increases and tighter enforcement of account-sharing are already common industry moves (Netflix and others have done the same). If HBO Max raises prices and limits sharing, some subscribers may accept higher costs for premium content while others may churn or look for alternatives.

Quote

“The fact that this is quality — and that’s true across our company, motion picture, TV production and streaming quality — we all think that gives us a chance to raise prices,” — David Zaslav

Sources

• Engadget — HBO Max is going to get a lot more expensive, CEO promises
• WebProNews — Warner Bros. CEO Zaslav Signals HBO Max Price Hikes for Profitability

What do you think? Would you pay more for HBO Max, or should the company look to different revenue options? Leave your opinion below.