David Zaslav, the new CEO of Warner Bros., has publicly lamented HBO Max subscription costs. He thinks they are all “underpriced” considering the top-notch content that’s on the platform. In a wide-ranging interview with The Hollywood Reporter earlier this month, Zaslav opened up about HBO Max’s new direction. He acknowledged that they needed to improve the service’s value first, before addressing problems such as password sharing.
Warner Bros. Discovery extensive rebranding of its streaming service back to HBO Max after formerly promoting it as just “Max.” This move is one more step in defining the brand’s identity. It’s all part of a larger strategy to be different in an increasingly competitive marketplace with an abundance of streaming choices. Zaslav indicated that the company’s focus will initially be on solidifying the audience’s love for HBO Max’s diverse content library, which includes not only acclaimed series and films but free live sports and news programming.
Planned Price Increase
Earlier this year, HBO Max teased, if you can call it that, a price hike on its subscription streaming service. This first change was subsequently dubbed the Rubio bump. Zaslav has already announced intentions to raise the price dramatically in the near future. Catz agrees that the existing content/affect model is not working and doesn’t create a good link between what’s paid for and the quality/experience of the content/services. He says improving subscribers’ overall perception of value will be key before Netflix goes harder on password sharing.
The addition of an Ultimate ad-free tier further muddles HBO Max’s pricing scheme. This new dynamic option provides another layer of convenience for subscribers. Its biggest move may be the way it limits functionality in the Standard ad-free tier. This change encourages users to consider upgrade subscriptions. It further opens the critical debate of whether market pricing is aligned with the quality of what’s on offer.
Addressing Password Sharing
During the earnings call, Zaslav mentioned the company’s upcoming anti-password-sharing measures, which will roll out later this year. So, increasing user engagement with content – that’s job number one, according to him. When they will finally address this concern remains to be seen. The current approach suggests that Warner Bros. aims to foster a loyal customer base before enforcing stricter controls on account access.
Beyond the password sharing issue, Zaslav further promised that HBO Max will double down on adding more content. The platform has emerged as a surprising dark horse in the streaming wars. It has taken bold steps to improve the viewing experience for its subscribers. With an emphasis on premium content and user satisfaction, HBO Max is positioning itself for continued growth amid rising competition.
