Toni Dimaano Tech 01.12.2023 22:Jan PM EST

Warner Bros Discover Raises Prices For HBO Max's Ad-Free Plan For The First Time

For the first time since the streaming service's inception in 2020, Warner Bros Discovery Inc is increasing HBO Max's ad-free subscription price in the United States.

With this, existing ad-free members must start paying $16 per month beginning with their upcoming billing cycle, but not before February 11th, Engadget writes.

HBO Max Is Putting The Extra Fee Towards Improving Its Services

Since HBO Max's launch in May 2020, there have been no price increases, but given that Warner intends to combine it and Discovery+ this spring, the timing of the price increase is noteworthy.

Additionally, the firm has not disclosed the cost or even the name of the merged package, and it is unclear if the cost of the ad-supported plan will increase from $10 a month.

However, the cost of a new HBO Max no-ads monthly subscription in the US will rise to $16 with effect from Thursday, January 12, from $15 with any applicable taxes.

"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 company says.

The price increase comes after Warner Bros Discovery, which was created after Discovery acquired WarnerMedia in 2022, made a number of content reductions intended to minimize costs.

In addition to 200 earlier "Sesame Street" episodes and a number of exclusive film releases, it has also canceled the HBO original series "The Nevers," and the HBO Max original series "Minx."

Additionally, the company revealed intentions to pull a number of series from HBO Max last month in order to license them to FAST partners who offer free, ad-supported streaming TV, Variety reports.

The revised prices for the ad-free plan, which is now $15.99/month, and the ad-supported plan, which is now $9.99/month, are both listed on the HBO Max website as of Thursday.

The Increase Has Been Expected But Still Surprising

Slowing user growth and intense rivalry from bigger rivals like Netflix Inc. and Disney Plus from Walt Disney Co. put pressure on HBO Max.

According to Reuters, HBO Max's price increase was previously hinted at by Warner Bros. Discovery, following Netflix and Disney's recent pricing increases for several of its streaming services.

HBO Max and Discovery Plus will be combined under Warner Bros. Discovery, which was created last year through the merger of AT&T Inc.'s WarnerMedia division and Discovery Inc.

It can also be remembered that at an investor conference last week, chief financial officer Gunnar Weidenfels, added that there is no question that the company's services are priced way too low, CNN Business says.

"We're coming from an irrational time of overspending with very limited focus on return on investment, and I think others are going to have to make some adjustments that we frankly have behind us now," he says.

In November, JB Perrette, president and CEO of worldwide streaming and games, told investors that the business had a chance to boost the price of HBO Max's ad-free tier.

He stated that it will have been three years since prices had changed by 2023, and there could have been different price advantages and opportunities that the move entailed.

Meanwhile, a combined HBO Max-Discovery Plus platform is being prepared by the media conglomerate and is scheduled to debut in the US in the spring of 2023.

According to Variety, the company hasn't yet disclosed information about pricing, packaging, or a name, however "Max" is now the front-runner.