HBO Max subscribers can expect to pay more in the coming months, though Warner Bros. Discovery isn't saying exactly when or how much.
CEO David Zaslav, speaking at the Goldman Sachs $GS Communacopia + Technology Conference, said HBO Max, which he said will be in 150 million homes by next year, is undervalued. And he plans to rectify that.
"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 price," he said. "We think we’re way underpriced. We’re going to take our time."
Zaslav boasted about HBO Max's content library, saying the quality of its shows was superior to the competition – and theorized that the streaming market, at present, is overcrowded.
“The marketplace is really challenged with too many players in the market,” Zaslav said. “When people turn on — the consumers put on their TV, it’s a terrible consumer experience. In almost every market in the world, there’s just way too many choices. And you’re googling, ‘Where is it? How do I get from one to the other? How do I get into that platform?’”
Price hikes aren't all that HBO Max subscribers can look forward to. Zaslav also reiterated plans for the company to begin a crackdown on password sharing, something it previously said would begin this month.
In August, the company announced on an earnings call it would more aggressively pursue people who share passwords. People who insist on adding viewers outside of their household will be asked to pay an additional $7.99 per month. (That fee has actually been in place for a while, but the restrictions haven't been strongly enforced.)
The crackdown follows Netflix $NFLX’s decision to put an end to password sharing in 2023 and a similar action in February 2024 by Disney $DIS+, Hulu and ESPN+. Disney CEO Bob Iger said the issue was “a real priority” in an earnings call with analysts in 2023.
Password sharing has become a problem for all streaming services and could cost the industry up to $25 billion a year, according to a Citibank report.
Warner Bros. Discovery last raised prices on its streaming service in June of 2024. After launching at $15 per month in May 2020, an ad-free subscription now runs $17 per month.