HBO Max Up a Buck

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PGage

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Feb 6, 2023, 9:38:37 PM2/6/23
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YoutubeTV sent me following email today; can’t remember getting a warning, other than Zas telling us he had to crack that $1 Billion nut:

“We are writing to let you know that starting March 6, 2023, the monthly price for HBO Max will increase from $14.99 to $15.99. You will see this new price on your next bill, on or after March 6.


Please note that this HBO Max price change also impacts other distributors”

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Adam Bowie

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Feb 7, 2023, 5:40:37 AM2/7/23
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I think that this was announced back on 12 January. 

'“This price increase of one dollar will allow us to continue to invest in providing even more culture-defining programming and improving our customer experience for all users,” the company said in a statement.'

I guess that a $1 increase is small enough that most won't cancel, but obviously brings in a sizeable chunk of revenue.

The real question with streaming services is how long they make month to month subscriptions easy/of value. If churn rates grow as prices go up, they'll surely want to lock in more to annual contracts?


Adam

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PGage

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Feb 7, 2023, 9:36:06 AM2/7/23
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Exactly. My household is a pretty heavily invested in streaming services. Currently we have a group of core streamers that we continually subscribe too (e.g Netflix), and others that we rotate through for a month or two depending on interest (e.g Britbox).

The more they crackdown on sharing subscriptions (part of what justifies this expense for us is making it available to our adult children) and raise the prices, the less we are motivated to have stable subscriptions. At $16 a month I become more interested in canceling HBOMax and just turning it on a month at a time when needed (if HBO even allows that). Same with Netflix if we are no longer able to share with our kids.

It’s hard to believe they will continue to allow month by month subscriptions in this environment, though I guess long term subscriptions discourage sign ups. I suppose what we may get more of is high price hikes which will not apply if you agree to an annual subscription.

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