Warner Bros Discovery CEO David Zaslav has laid out a clear strategy for HBO, and it involves making the streaming service significantly more expensive while aggressively cracking down on password sharing. The executive detailed his vision at a recent Goldman Sachs conference, centering on the belief that the high quality of HBO Max content justifies a substantial price increase.
Zaslav stated that the quality of the platform’s offerings, which spans its film, television, and streaming divisions, provides a strong rationale for raising subscription fees. He expressed a firm view that the service is currently underpriced in the market. This comes after a recent price hike earlier in 2024 when the service was briefly rebranded as Max. Currently, the ad-supported plan starts at $9.99 per month, while the top-tier ad-free Premium plan costs $20.99 monthly. Zaslav’s comments indicate a push toward even higher price points in the near future.
Alongside the planned price increases, the company is moving forward with its intention to clamp down on password sharing. Warner Bros Discovery had previously announced its goal to eliminate loopholes for account sharing by the end of this year. Zaslav acknowledged the challenge, noting that while the popularity of HBO’s content is a positive, the widespread sharing of passwords presents a significant business obstacle that the company is prepared to tackle.
This two-pronged approach of raising prices and restricting shared accounts follows a playbook successfully pioneered by Netflix and subsequently adopted by other major streaming services. For an established premium brand like HBO, such moves are becoming an industry standard, though publicly stating these intentions does little to counter the perception of its CEO as a bottom-line-focused executive, a reputation often highlighted in media profiles.
These financial maneuvers are set against a backdrop of larger corporate upheaval, as the planned breakup of the Warner Bros Discovery conglomerate looms, making the push for increased revenue from its flagship streaming service a critical priority.
