David Zaslav: HBO Max Is ‘Way Underpriced’
▼ Summary
– Warner Bros. Discovery CEO David Zaslav believes HBO Max is underpriced and can command a higher price due to its quality content.
– Zaslav stated that the company’s premium output across motion pictures, TV production, and streaming justifies a price increase.
– HBO Max currently starts at $9.99 per month for the ad-supported plan and goes up to $20.99 for the premium plan, aligning with competitors.
– Zaslav also announced plans to crack down on password sharing, describing it as an area where Max will “begin to push.”
– This follows a previous threat from last month’s earnings call to get “more aggressive” on password sharing starting in September.
Warner Bros. Discovery CEO David Zaslav believes HBO Max is significantly undervalued and poised for a price increase. Speaking at the Goldman Sachs Communacopia and Technology Conference, Zaslav emphasized the platform’s premium content as justification for higher subscription fees. He argued that the quality of their offerings across film, television, and streaming provides a solid foundation for raising prices.
According to Zaslav, HBO Max is “way underpriced” compared to the value it delivers. The service currently offers a tier starting at $9.99 per month with advertisements, while its top ad-free plan costs $20.99 monthly, a range that aligns with competing streaming services. Despite this, the executive sees room for upward adjustment based on what he describes as superior content quality.
In addition to discussing pricing, Zaslav confirmed plans to crack down on password sharing. He indicated that Max will soon “begin to push” on the issue, reinforcing comments made during last month’s earnings call about adopting a “more aggressive” stance starting in September. This move mirrors similar efforts by other major streaming platforms to boost revenue by limiting account sharing among users.
(Source: The Verge)
