Subscribers to the HBO Max streaming platform on Wednesday morning received an email notifying them of an “upcoming price change.”
What does this mean for bill watchers in an environment when discretionary spending is increasing under the microscope, given continued economic uncertainty?
Consumers of the app will be paying 8.8% more per month, starting on the next billing date on or after November 20.
This will see the Standard Monthly price of $16.99 rise to $18.49 — plus applicable taxes. For those on a promotional offer, the new monthly rate will jump at the end of that term.
HBO Max’s Basic with ads plan is increasing from $9.99 per month to $10.99, while the Premium plan will move from $20.99 per month to $22.99.
The home of “The Last of Us” and content from across the Warner Bros. Discovery family of cable TV channels isn’t the only OTT giant to increase its monthly subscription rates, as Disney+, Apple TV and Netflix have all done so.
However, WBD’s move comes as the company’s Board of Directors has “initiated a review of strategic alternatives to maximize shareholder value, in light of unsolicited interest the company has received from multiple parties for both the entire company and Warner Bros.”
For MoffettNathanson senior analysts Craig Moffett and Robert Fishman, a potential Paramount Skydance bid “makes a lot of strategic sense” as it could merge HBO Max with Paramount+. “Combining the linear network portfolios would also likely yield significant cost synergies, while unlocking strategic benefits from pairing CBS News with CNN and leveraging the long-standing CBS-Turner partnership for NCAA’s March Madness Final Four plus other overlapping sports rights portfolios,” the financial analysts say.
Which other companies would be most likely to submit a formal bid for either all of WBD or any of its valuable pieces? “The obvious candidate is Comcast,” Moffett and Fishman believe. “A Comcast bid would start with the strength and potential for cost synergies in combining the two companies’ studios and streaming platforms. There is additional opportunity to monetize Warner Bros. I.P. with Universal Theme Parks (think Batman, for example). And, of course, there are also potential cost synergies between Versant and WBD’s cable network portfolio. On paper, the fit is nearly perfect.”
