![]() Conversely, WBD could price HBO Max-plus-Discovery Plus lower than the sum of the separately sold parts while keeping the individual services’ pricing unchanged. Discovery: The company might raise prices on the individual services (HBO Max and Discovery Plus) for those who choose to keep them as standalones, but offer a relative price break on a combined service - which would be a carrot for subscribers to spend more to get the bigger package. Here’s what could happen going forward at Warner Bros. viewers feel overwhelmed by the growing number of services and platforms - and 64% said they wished there was a “bundled video streaming service” that would let them choose which video streaming services they wanted. According to a recent Nielsen survey, 46% of U.S. The net effect is to increase average revenue per customer, while (in theory) the fixed cost of supporting an individual subscriber/account remains about the same.Īnd consumers like bundles. In addition, Paramount is selling bundles of Paramount Plus and Showtime for $11.99 (with ads) or $14.99 (no ads), discounts of 25% and 29%, respectively.Ĭompanies offer discounted bundles because, in industry lingo, they’re “stickier” i.e., customers are less likely to cancel if they take more than one service from a provider. ![]() But there’s precedent for actually lowering prices when services are bundled into a single purchase plan.ĭisney, for example, sells the “Disney Bundle” of Disney Plus, Hulu and ESPN Plus for $13.99/month with (Hulu ad-supported) or $19.99/month (Hulu ad-free) - a 36% or 29% discount, respectively, compared with purchasing the trio separately. The question is: Will the forthcoming merged streaming service from WBD, whenever that may arrive, simply be the sum total of the monthly prices of HBO Max and Discovery Plus? At the conference, Wiedenfels didn’t talk about potential pricing. ![]() Disney also upped the price of Hulu’s on-demand plans by $1 per month last fall, while the annual price of Amazon Prime membership in the U.S. While the low price point has helped the Mouse House grab market share, WarnerMedia execs have cited HBO Max’s much higher average revenue per user (ARPU) than Disney Plus as a salient metric. Last year Disney Plus raised its price by a buck, to $7.99/month. Today, Netflix’s standard plan is $15.49/month in the U.S., after the streamer enacted three price hikes over three years. ![]() (Indeed, the pre-launch industry speculation was that HBO Max would come out of the gate at a higher price than classic HBO.) WarnerMedia had effectively created a price floor for itself: Subscribers of the legacy HBO service were paying $15 per month, and given that HBO Max is a superset of HBO it would have been untenable to undercut that. ![]() When HBO Max came out at $15 per month, it was the priciest of the general-entertainment subscription VOD services. “Building one very, very strong combined direct-to-consumer product and platform, that’s going to take a while.”Īt some point, WBD would be in a position to raise streaming prices - as many of its rivals have. “We believe that the breadth and depth of this content offering is going to be a phenomenal consumer value proposition.”Ī combined HBO Max-Discovery Plus will arrive “hopefully not in years, but in several months,” the CFO added. Discovery, said at an investment conference last month. “e believe in a combined product as opposed to a bundle,” Discovery CFO Gunnar Wiedenfels, set to become chief financial officer at Warner Bros. But as for how WBD gets there, the crystal ball is hazy. The plan is for HBO Max and Discovery Plus to be fused into one service eventually. ![]()
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