David Zaslav Promises To Raise The Price For An HBO Max Subscription And Crack Down On Password Sharing, Eventually
HBO Max is a cornerstone of Warner Bros. Discovery’s business in this new era, so it’s no surprise that CEO David Zaslav is a big fan of the streaming service. He puts it far and above all of the competition as true “quality,” which is why he believes he can justify higher prices for signing up.
“The fact that this is quality – and that’s true across our company, motion picture, TV production and and streaming quality – we all we think that gives us a chance to raise price,” he said at the Goldman Sachs Communacopia + Technology Conference (via The Hollywood Reporter).
Zaslav added, “We think we’re way underpriced. We’re going to take our time.” It sounds like he is saying Warner, HBO, and maybe even himself are the figurative table. Moreover, you who have Max should feel bad that they are giving you so much content – that not a lot of people watch – below market value.
Right or wrong, and self-aggrandizing or not, Zaslav is only keeping up with the television and streaming Joneses. All the giants have hiked their prices, especially Netflix. Most recently, WWE has been charging more for everything since merging with the UFC and closing a lucrative deal with ESPN.
Another thing these companies do with their streaming apps is close the loops of password sharing. HBO Max hasn’t done it yet, but Zaslav assured everyone at the conference that they will, after they bait the hook internationally.
“We haven’t been pushing on the password sharing and the economics yet,” said the CEO. “People are really starting to love HBO Max. That’s the key. We want them to fall in love with our content, with our series, with the differentiated offering outside of the U.S.”
He continued, “It’s all tricky with the password sharing. We’re going to begin to push on that.” Zaslav believes his product will stand out, and stand tall, in a world market he is critical of. “The marketplace is really challenged with too many players in the market,” he said.
“When people turn on – the consumers put on their TV, it’s a terrible consumer experience. In almost every market in the world, there’s just way too many choices. And you’re googling, ‘Where is it? How do I get from one to the other? How do I get into that platform?’” Zaslav explained.
Our Takeaway
David Zaslav wants to show people that HBO Max is growing and has value, whether or not it’s only perceived value based on his sales pitch. He wants it and the half of WBD he will be running, which HBO will fall under after the coming split, to look strong and flush with cash.
That will be easier once he offloads the outstanding debt onto Discovery and his CFO Gunnar Wiedenfels – the other entity resulting from the split. It will also be beneficial when they have parties such as Paramount Skydance and Netflix, jockeying to bid on their company. Zaslav’s eyes are on the prize – the cash prize, that is.
NEXT: Warner Bros. Discovery CEO David Zaslav Wants The Paramount Merger Talk To Become A Bidding War
