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HBOMax prices in the US only increased by $12 a year. It’s not good news, but also par for the course. There is a big change happening in content based services. Too bad really, because it all started so promising.
For example, there was a brief moment when modern digital convenience was synonymous with cost savings. For example, we took Ubers because they were cheaper than taxis – until they weren’t. We booked Airbnbs because they were cheaper than hotels – until all the advertising and fees made them comparable.
And we signed up for all those streaming services because they were cheaper than cable. Now, in total they really aren’t.
The news of the price increase from $14.99 per month to $15.99 per month should come as no surprise. Since the massive Merger between WarnerMedia and Discovery (opens in new tab) to form the new media conglomerate Warner Bros. Discovery, there are changes going on both on and behind the scenes. There have been layoffs (CNN took a beating) and content cuts, including the shelving of an almost complete Batgirl movie.
But why?
When asked to comment on the price hike (which we saw coming), HBOMax representatives didn’t offer much color, but forwarded a statement reiterating the effective immediate price change for new customers. Existing ones pay more next month. I just received my HBOMax bill and can confirm that for January 2023 it is still only $14.99 per month. HBO does not want to comment on price changes outside the US.
As for why it raises prices, the statement adds this:
“This $1 price increase allows us to continue to invest in providing even more culture-influencing programming and improving our customer experience for all users.”
It further notes that this is the first price increase since the platform launched in 2020.
I think HBOMax held out as long as it could before joining pretty much every other streaming platform, including Netflix, Disney+, and Hulu to raise subscription prices. The cost of making new movies and shows (to be fair, the cost of everything) is going up and now being passed on to subscribers.
The reality for us, however, is that this once-glossy proposal of an affordable a la carte menu of streaming content is becoming a bit more of a financial burden essentially equal to the cost of cable we started over a few years ago. to cut off.
A recent research found that one in four households pay more than $75 a month for streaming services, which isn’t surprising when you consider that 24% subscribe to at least three services, according to the survey. Interestingly, more than half base their streaming service choices on price, while only a third consider content library.
But the truth is, once you’ve subscribed and become addicted to a favorite show like Stranger Things or House of Dragon, it’s unlikely you’ll give up, even with these incremental increases.
HBOMax, Netflix and Parmount+ know this. That’s why they launch so many shows, hoping to hook you up. At least HBOMax can hold you longer by stretching a show’s release over the course of weeks, if not months. But to create all that must-have content, they need millions (if not billions) of dollars. That’s why they all turn to us for more and more money.
An ad layer won’t save us
There are and will be more options. You can save money by signing up for ad-supported streaming services like Netflix with ads. It’s cheaper, but all your favorite shows are interrupted by commercials, just like the cable and broadcast shows you tried to leave behind.
One school of thought says that the very existence of these ad-supported tiers is why premium streaming subscriptions are more expensive. Sure, companies like Netflix can say we’re charging more for our top-notch services, but we’re now making it affordable enough for everyone – as long as you don’t mind a few commercials.
HBOMax does not have an ad-supported tier yet. So if you want to see the already acclaimed Last of Us series, pay that extra dollar.
That’s really the only thing that’s certain about the future of streaming services. If you want high-quality, ad-free content, you’ll pay more. Bundles that sweep up three or four streaming services for a small discount might be the answer, but then we’re not right back to cable bundles where we end up with a ton of content we never wanted in the first place.
Probably.