HBO Max, the streaming service launched by WarnerMedia in 2020, announced its first price hike on Thursday, raising the monthly rate from $14.99 to $15.99. The increase comes after HBO pulled hundreds of episodes of classic cartoons and shows like Westworld from the service, leaving some subscribers feeling that they are now paying more for less content.
HBO Max is increasing its subscription price by $1
According to a press email from HBO Max, the price increase will allow the company to continue to invest in new programming and improve the customer experience. The ad-supported plan will reportedly keep its $9.99 per month cost.
|HBO Max||Ad supported||$9.99|
This price increase is not unique to HBO Max, as many streaming services have raised prices in recent months in an effort to build viable businesses and prove to investors that they can generate sustainable revenue. Netflix, for example, has implemented incremental price hikes over several years.
The price hike for HBO Max also comes as the company is facing financial challenges, with a recent conference, Warner Bros. Discovery CEO David Zaslav noting that “it’s going to be hard” to meet the company’s 2023 earnings forecast of $12 billion, according to CNBC. This price increase may be an effort to close that gap.
In addition, HBO Max and Discovery Plus are set to be merged into a single app this spring, which will reportedly be called Max. The merger of WarnerMedia and Discovery last April created a $30 billion market cap, half of the $60 billion they were valued at immediately after combining.
Overall, the price increase for HBO Max is a reflection of the broader challenges facing the streaming industry as companies try to find the right balance between offering value to subscribers and generating sustainable revenue.
We already saw these kinds of price hikes on Disney Plus in December, Apple TV+ and Hulu in October, and Netflix early last year. If you would like to cancel your subscription, you can follow these ways.
How to cancel HBO Max
- Go to HBOMax.com on your computer and sign in to your account.
- Choose your profile (upper right), then choose Settings, and find Subscription.
- Choose Manage Subscription.
- Don’t have a Manage Subscription option? Notice who your subscription is billed through.
- Choose Cancel Subscription.
- Confirm your cancellation and note your expiration date.