Warner Bros. Discovery (WBD) announced its adjusted subscription fees for ad-free tiers for Max, starting at $16.99 per month.
The new price hike will be effective immediately for new subscribers while existing customers will be given some notice before it reflects on the next billing cycle.
(Photo : HBO Max via YouTube)
Read Also: HBO's House of the Dragon Season 2 Trailer Shows Drama, Dragons, and More Dragons
Max Relies on Price Hike for Increased Profit
According to reports, Max is targeting to boost the profit of its ad-supported plans. The increasing price point to an ad-free experience while streaming could drive subscribers to sign up for a tier with ads.
"I remain fully confident in our path to achieve our $1 billion-plus EBITDA target for 2025 and our growth ambitions thereafter," said Gunnar Wiedenfels, CFO for WBD.
In addition, the company cited that the price increase will allow them to invest in "more culture-defining" content and improve the overall customer experience of all users.
The annual plan will now go up from $149.99 to $169.99. The ultimate ad-free tier is now available for $20.99 per month and $209.99 per annum.
Max Retains Offer for Ad-Supported Tier
On the contrary, WBD decided to retain the price for its ad-supported version. The subscription will still cost $9.99 per month or $99.99 per year.
Subscribers who already paid for their current yearly bill will not be affected by the increase until their renewal. All existing subscribers, who are billed monthly, will see the new price on their bill on or after July 4.
WBD also assured that a notice will be sent out to the subscribers within 30 days before their next billing. This will be set as a reminder for customers to either renew or change their subscription tier before it appears on their next bill.
Max has three existing streaming tiers starting from the ad-supported plan that allows two-device streaming. The ad-free tier and ultimate ad-free offer more user experience at more expensive prices.
Related Article: Disney, Hulu, Max Announces Streaming Bundle That Starts This Summer
