HBO Max is raising prices for the first time since the service was launched three years ago as losses from its streaming productions grow.
The cost of HBO Max without commercials will rise 7% to $15.99 U.S. a month, according to the streaming service’s owner, Warner Bros. Discovery (WBD).
The price increase makes HBO Max slightly more expensive than Netflix’s (NFLX) standard $15.49 U.S. per month plan. Both companies now offer cheaper ad-supported tiers as well.
HBO Max is an online extension of Warner Bros’ HBO cable channel but with more content.
The company plans to introduce a new streaming service this spring that combines HBO Max with Discovery+, which airs unscripted lifestyle shows such as “Love It or List It.”
After years of focusing on subscriber growth, media companies are now facing pressure to become more profitable in streaming.
Warner Bros. Discovery stock is down 49% in the past year and trading at $13.14 U.S. per share.