In a recent appearance at the Goldman Sachs Communacopia + Technology Conference, Warner Bros. Discovery Inc. Chief Executive David Zaslav signaled a potential shift in the company’s streaming strategy, declaring that HBO Max is “way underpriced” and hinting at future price increases. This comes amid broader efforts to boost profitability in a competitive streaming market, where subscriber retention and revenue per user are under intense scrutiny. Zaslav’s comments underscore the conglomerate’s confidence in its content lineup, which includes premium series like “Succession” and blockbuster films from the Warner Bros. studio, positioning the service as undervalued relative to rivals.

Zaslav emphasized that HBO Max’s pricing, currently starting at $9.99 per month for the ad-supported tier and $16.99 for ad-free, leaves “real opportunity” for hikes as user engagement grows. He pointed to the platform’s expanding international footprint, including recent launches in Australia and planned expansions into Europe in 2026, as key drivers for monetization. This optimism follows a tumultuous rebranding saga, where the service transitioned from HBO Max to simply Max in 2023, only to revert back to HBO Max in July 2025, a move that The Hollywood Reporter reported cost the company significantly in marketing and consulting fees.

Strategic Pricing in a Maturing Market
Industry insiders note that Warner Bros. Discovery’s approach mirrors tactics employed by Netflix Inc., which has successfully implemented gradual price increases alongside password-sharing crackdowns. Zaslav mentioned that while HBO Max has begun addressing password sharing, the company is not yet aggressively enforcing it, preferring to let subscribers “fall in love” with the content first. This patient strategy, as detailed in a recent TheWrap article, aims to minimize churn while building loyalty through high-quality offerings, such as exclusive HBO originals and a vast library of Warner Bros. films.

Financially, the push for higher pricing aligns with Warner Bros. Discovery’s goal of achieving $1.3 billion in earnings from HBO Max this year, a target Zaslav reiterated during the conference. Analysts suggest this could involve tiered increases, potentially raising the ad-free plan to $18 or more, based on engagement metrics. Posts on X (formerly Twitter) from users like those aggregated in real-time searches reflect mixed sentiment, with some praising the content value while others decry repeated hikes, echoing a 2024 increase that bumped the ad-free tier from $15.99 to $16.99.

Balancing Growth and Subscriber Sentiment
The reintroduction of the HBO Max brand in 2025, as covered by The Washington Post, was partly driven by nostalgia and brand strength, with executives like HBO CEO Casey Bloys joking about reusing old stationery during upfront presentations. This branding pivot, combined with content investments, is seen as a foundation for pricing power. Zaslav also highlighted replacements for lost NBA rights with “a lot of good stuff,” per insights from Streaming Smarter, including sports alternatives and original programming to maintain viewer stickiness.

However, challenges loom, including competition from Disney+ and Amazon Prime Video, which have also adjusted pricing amid inflation and content costs. Warner Bros. Discovery’s CFO Gunnar Wiedenfels, speaking at the Bank of America 2025 Media Conference as transcribed on MarketScreener, indicated a focus on global expansion to offset domestic saturation. For insiders, this signals a calculated bet on premium positioning, but success hinges on delivering consistent hits without alienating price-sensitive users.

Future Implications for Streaming Economics
Looking ahead, Zaslav projected 2026 as a “big year” for HBO Max, with launches in key markets like the U.K. and Germany, according to Media Play News. This international push could enable region-specific pricing, adapting to local economies while maximizing revenue. Critics, however, warn that over-reliance on hikes might accelerate cord-cutting trends, especially as economic pressures persist.

Ultimately, Warner Bros. Discovery’s strategy reflects a broader industry maturation, where content quality justifies premium fees. As Zaslav noted, the company plans to raise prices “gradually” to sustain growth, a tactic that could redefine value in streaming if executed well. With 122.3 million combined subscribers for Max and Discovery+ as of May 2025, per Wikipedia updates, the conglomerate is betting big on its rebranded flagship to lead the charge.