Warner Bros. Discovery CFO calls company’s HBO Max and Discovery+ ‘underpriced,’ suggesting price hikes may be coming

‘House of the Dragon’ series logo displayed on a phone screen and HBO Max website are seen in this illustration photo taken on August 16, 2022.

The growth of streaming service subscribers may be slowing, but that doesn't mean prices won't go up.

The chief financial officer of Warner Bros. Discovery said during the conference that the streaming services are underpriced.

The company has enough room to raise prices due to the strength of the content on the services, according toWiedenfels. Warner Bros. Discovery said last month that it would launch a new service in the US and international markets in the 20th century.

The company may use the merging as a chance to raise prices. There are no ads or commercials at the current price of $14.99 per month. Discovery+ costs $6.99 per month with no ads or commercials.

This week, HBO Max won 38 awards, more than any other streamer. The White Lotus won five awards during the prime time ceremony. The strategy of Warner Bros. Discovery is to combine their award-winning programming with Discovery's lighter reality content, which should reduce Churn.

A standard plan price of $15.49 per month is the most expensive major streamer. The price of Disney+ without ads was raised from $7.99 a month to $10 a month.

Warner Bros. Discovery wants to have 130 million subscribers by the year 2025. The company still expects to make $1 billion in profit by the end of the year.

Warner Bros. Discovery is not chasing subscriber growth. The company has more pricing power over its streaming businesses because of that change.

Wiedenfels called that type of strategy "old world streaming"

Sarah Whitten was a contributor.

The company looks to cut costs.