Warner Bros. Discovery Raises Streaming Prices A Month After CEO Said Plans Were 'Way Underpriced'

Core Insights - Warner Bros. Discovery has raised the prices of its HBO Max streaming plans, indicating a strategic move to align pricing with perceived value and competition [1][2][4][5]. Price Increases - HBO Max's Basic plan (with ads) now costs $10.99 per month, an increase of $1, while the Standard plan (without ads) is now $18.49, up $1.50 [2]. - This marks the third price increase for HBO Max since its launch in 2020, with previous increases occurring in January 2023 and June 2024 [3]. Competitive Landscape - Warner Bros. Discovery follows other major media companies like Disney, Apple, Comcast, and Netflix in raising streaming prices, reflecting a broader trend in the industry [4]. - CEO David Zaslav previously stated that HBO Max was underpriced compared to competitors, suggesting a belief in the platform's quality and value [5]. Strategic Review and Potential Sale - The price increase coincides with Warner Bros. Discovery's exploration of strategic alternatives, including a potential split into two companies focused on film/TV studios and cable channels [7][8]. - The company has received unsolicited offers from multiple parties, indicating interest in its assets, and has reportedly turned down offers from Paramount [8][9]. Stock Performance - Warner Bros. Discovery's stock has seen significant gains, closing at $20.53, with a year-to-date increase of 92.6% and over 170% in the last year [10].