Subscribers of HBO Max woke up today to find out that the service is increasing the price for its ad-free option. Before today, an HBO Max ad-free monthly subscription cost $14.99. However, that price is going up by a dollar from $14.99 to $15.99 plus applicable taxes. HBO Max also announced that existing subscribers who are currently paying $14.99/month will see their monthly rate increase to $15.99 effective their next billing cycle on or after Saturday, February 11th. Of course, this isn’t the type of news subscribers like to hear, but with the competition between streaming services and stockholders looking for a bigger return on their investment, increases like these will continue to happen across the business.
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“This price increase of one dollar will allow us to continue to invest in providing even more culture-defining programming and improving our customer experience for all users,” the HBO Max press release reads. This is the first price increase for HBO Max since launching in May 2020.
HBO Max Announces Ad-Tier Subscription
WarnerMedia announced the new price tier for the ad-supported version of HBO Max during its upfront presentation in May 2021. At $9.99/month, the ad-supported version of HBO Max originally cost subscribers 33% less than the current ad-free version, which was priced at $14.99/month. According to former WarnerMedia CEO Jason Kilar, the ads on HBO Max will be “the most brand-safe, elegant experience for advertisers,” there is in the streaming industry.
As for consumers? WarnerMedia wanted them to know that subscribing to the ad-supported version of HBO Max won’t turn into a nightmare for viewers; ad sales head JP Colaco promised that the HBO Max ads will be the “lightest ad load in the industry.” There are no further details on what that statement means in terms of how many ads will run per hour on HBO Max, but it’s a bold statement that the service will have to live up to.
HBO Max and Discovery+ Streaming Service Merger
HBO Max launched in the spring of 2020 under its original parent company WarnerMedia, with Discovery unveiling discovery+ in January 2021. Both streaming services feature content from Warner Bros. and Discovery’s vast catalogs and are now under one roof when Discovery acquired Warner Bros., creating the new company Warner Bros. Discovery. CEO David Zaslav has confirmed the merger of HBO Max and discovery+, bringing the brands together for one cohesive streaming service. The only question, aside from when the combined streaming service will launch, is what name will HBO Max/discovery+ go by.
CNBC reports Warner Bros. Discovery executives are formalizing plans to make “Max” the name for the merged HBO Max and discovery+. The outlet reports lawyers are in the process of vetting the name. While “Max” may be the front-runner, sources claim executives have not made a final decision on if “Max” will be chosen. Warner Bros. Discovery is reportedly referring to the new service internally as “BEAM” with other names also being vetted.
