Subscribers of the popular streaming service Max need to prepare for an upcoming price increase. Starting June 4, the ad-free tier’s monthly fee will rise by $1, from $15.99 to $16.99, while the annual plan will see an increase from $149.99 to $169.99. The premium “Ultimate” ad-free tier will also see a price bump to $20.99 per month and $209.99 annually.
Current pricing remains for ad-supported plan
Despite the increases, the Max ad-supported version will maintain its current price of $9.99 per month or $99.99 per year, offering an alternative for those seeking a more budget-friendly option.
Transition period for existing customers
While new subscribers will encounter the new prices immediately, existing customers will be given a 30-day notice before their plan renews, with the new prices taking effect from the next billing cycle on or after July 4, 2024. Yearly subscribers will not experience the price hike until their next renewal date.
Reason behind the price increase
The decision to raise prices for the ad-free tiers is part of a strategy to boost the streaming service’s profitability and to nudge more price-conscious consumers toward the ad-supported plan.
Warner Bros. Discovery’s financial outlook
Warner Bros. Discovery reported a steady streaming segment revenue of $2.46 billion for the first quarter of 2024, with an increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to $86 million. The company remains optimistic about its profitability in the direct-to-consumer segment for 2024 and its $1 billion-plus EBITDA target for 2025.
What each Max tier offers
With Ads: Stream on two devices, Full HD video resolution
Ad-Free: Stream on two devices, Full HD video, 30 downloads for offline viewing
Ultimate Ad-Free: Stream on four devices, 4K Ultra HD and Dolby Atmos as available, 100 downloads for offline viewing
Warner Bros. Discovery emphasizes that the price increase will support continued investment in high-quality content and an enhanced customer experience.
Upcoming content highlights
Highlighted upcoming content includes “House of the Dragon” Season 2, “The Penguin” starring Colin Ferrell, and new seasons of “My Brilliant Friend,” “Industry,” “The Sex Lives of College Girls,” and “Sort Of,” along with live sports events like NBA, NHL, and MLB games.
