Warner Bros. Discovery CEO David Zaslav is reportedly looking for even more ways to cut costs and make more money, and this could include a price hike for Max and additional layoffs. Bloomberg reported these details and more ahead of WBD’s earnings briefing on May 9.
WBD has already cut more than 2,000 jobs in the past year, though the scale and timing of any future cuts is unknown. The report also said WBD might look to slash “hundreds of millions of dollars” from the company’s streaming division, mostly in marketing and technology.
In terms of a price hike for Max, the report said a price increase is coming, but it’s not clear when this could take place or what the new rate might be. Currently, Max costs $10/month with ads or $16/month without ads.
A spokesperson for WBD declined to comment on a potential price increase for Max or about the reported cost-cutting moves, but said the company is “focused on the long-term growth of the business overall.”
In terms of what WBD does plan to spend money on in the future, Zaslav has said the company will focus on franchises and tentpoles that have the best shot at making a profit. To that end, WBD has announced a Harry Potter TV show and an additional Game of Thrones spin-off.
Additionally, Zaslav has said he believes the company’s big money-makers, including DC and The Lord of the Rings, are currently “underused.” This could be a signal that WBD plans to invest further in these franchises in the future.
In other news, Conan O’Brien, who just launched a new TV show on Max, recently poked fun at the decision to change the name of HBO Max to Max on an appearance on Hot Ones. He said, “Is it HBO Max or just Max? I can’t get used to it. It’s not a better name.” He added: “They used to call it HBO, but people found that too popular. So now it’s Max because that really rolls off the tongue.”
Amid WBD’s layoffs, cuts, and the high-profile cancellation of Batgirl, Zaslav recently saw his pay rise in 2023 to $49.7 million, up from $39.3 million in 2022.
WBD will release its next earnings report and answer questions on May 9, so keep checking back for more.
