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Warner Bros. Discovery (WBD) said it has raised the monthly price of HBO Max, its marquee premium streaming service, for the first time since it was launched in May 2020
Starting today, the price for HBO Max's ad-free service in the US rises $1, from $14.99 to $15.99 per month (plus applicable fees). People with existing HBO Max subscriptions will get the new, higher rate effective their next billing cycle on or after February 11, 2023, the company said.
The increase prices HBO Max above Netflix's standard, ad-free tier, which costs $15.49 per month. Similar subscription plans from Hulu ($14.99), Paramount+ ($9.99) and NBCU's Peacock ($9.99) also cost less than HBO Max.
But HBO Max is far from alone in the price hike club among entertainment streaming services. Last fall, Apple TV+'s price jumped from $4.99 per month to $6.99, followed by an increase for the ad-free Disney+ service – from $7.99 per month to $10.99 – as part of a wider change in Disney's price structure for premium streaming services.
WBD reasoned that the $1 per month increase – a rise of about 6.6% – will enable the media giant to invest in "providing even more culture-defining programming and improving our customer experience for all users."
Variety points out that WBD had already been seeking ways to cut back on expenses ahead of the price hike, including the removal of select shows and seasons of shows and the cancellation of original series Minx
Though WBD says the price hike will be plowed into content investment, from a broader standpoint, some industry watchers expect overall content investment to slow down in 2023 as media giants look to rein in costs amid sluggish household spending and advertising investment