HBO Max raises price of ad-free service

Most of the time when the HBO Max streamer is in the news these days, it’s because something has been removed from the service – in fact, here’s a long list of titles that have been pulled from HBO Max. There’s even talk that “HBO” is going to be removed from the name of the service when it gets merged with Discovery+ in the spring. But today HBO Max is in the news because it has added something: they have added a dollar to the monthly cost of their ad-free plan.

Deadline reports that the monthly price of HBO Max has been raised to $15.99 – making it slightly more expensive than the most popular Netflix subscription plan, which is $15.49. The increase means existing subscribers who are currently paying $14.99 will see their monthly rate go up to $15.99 as of their next billing cycle on or after February 11.

The decision makers at HBO Max provided the following statement: “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.“

Deadline provides more information on the HBO Max situation: Most major streaming services have been boosting prices of late, which is a reflection not only of the inflationary economic environment but also the dawning acknowledgement of the hefty costs of delivering original programming via the internet. Apple TV+ just phased in a 40% hike, while Disney+ jumped from $8 to $11 a month in December as the company rolled out an advertising-supported tier. Netflix has implemented three price increases of its standard plan in the U.S. since 2017. Because of its roots in linear pay-TV, HBO Max has historically been limited in its ability to offer discounts and bundles. Before previous owner AT&T spun off HBO parent WarnerMedia into the merged entity with Discovery, it was encumbered by many distribution deals with “most-favored nation” clauses, meaning the price of HBO Max had to stay at $15 a month. During its first year of operation, that kept HBO Max the most expensive service in the market. Gradually, as the company gained wider digital distribution and the industry kept evolving, it has had more flexibility on pricing, and Netflix then leapfrogged it with its own hike.

HBO Max continues a global rollout, but output deals with Sky have ensured that the service won’t be available in the UK, France, or Italy until 2025. Warner Bros Discovery did recently secure a deal with Prime video that will add HBO content and 12 channels to Amazon Prime in France.

Are you an HBO Max subscriber? What do you think of the service raising its price ahead of the Discovery+ merger? Share your thoughts on this one by leaving a comment below.