HBO Max is “way underpriced,” Warner Bros. Discovery CEO says

In a recent address at the Goldman Sachs Cornucopia + Technology conference in San Francisco, David Zaslav, the CEO of Warner Bros. Discovery (WBD), stirred the pot regarding HBO Max's pricing strategy. Despite the growing dissatisfaction among consumers over rising streaming service costs, Zaslav believes HBO Max is significantly undervalued. He emphasized the platform's high-quality content, stating, "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. We think we’re way underpriced." Currently, HBO Max subscriptions start at $10 per month for the ad-supported version, while the ad-free options are priced at $17 and $21, the latter including premium features such as 4K streaming and enhanced audio. Since its rebranding to Max in May 2023, the service has already increased its prices twice: a hike from $16 to $17 for the standard ad-free plan occurred in June 2024, and annual subscription fees saw an increase of up to $20. In an effort to boost revenue further, HBO Max plans to tighten its policies on password sharing, a move originally set for 2024. However, Zaslav noted that the platform hasn't yet enforced these restrictions, as they are focusing on building viewer loyalty first. He expressed optimism that as audiences grow fond of HBO Max's offerings, WBD would be in a stronger position to implement price increases. Zaslav reflected on the past, recalling a time when viewers paid higher rates for broadcast and cable television compared to today's streaming prices, suggesting that there’s room for growth in the current market.