Why HBO Max’s Price Is So High Compared To Netflix & Disney+

HBO Max launched with a large push into the streaming wars, but at a higher price than other streaming services including Netflix, Amazon Prime, Disney+ and Hulu. The new service is hoping to keep HBO Now’s current customer base, while attracting new subscribers with a mix of original content and a large back catalog of launch titles. However, in a harsh economy and with more familiar streaming services already in place, HBO Max may have a hard time proving it’s worth the $14.99 a month price tag.

Streaming overall can be a drain on the wallet for many Americans, but prices vary and nuances give each platform a unique draw. Netflix has a range of $8.99 to $15.99 a month, offering flexibility for customers. Disney, which owns Disney+, ESPN+, and Hulu, offers a $12.99 a month bundle of all three for subscribers. Hulu also offers a price range, but starts at only $5.99/month. Meanwhile, Prime Video is included with an Amazon Prime membership so it feels free for most users. Along the same lines, Apple TV Plus is $4.99 a month, but a new Apple device gets customers a year’s subscription for free, so most subscribers aren’t currently paying. At the other end of the spectrum, HBO Max will cost $14.99 a month with an introductory offer of $11.99 if people sign up for a year. For current HBO Go subscribers, the cost won’t change, but that adds its own complications. 

WarnerMedia has invested millions into its HBO Max library, including paying a reported $425 million for the rights to Friends in hopes of luring away some of Netflix’s 183 million global subscribers. That kind of outlay needs recuperating, and with HBO Max set to produce costly shows including DC series and budgeting to finally release Zack Snyder’s cut of Justice League, it goes some way to explaining the price tag. On top of that, HBO Now is already available for $14.99 per month – with HBO Max offering the same service but more on top, it’d be very difficult to go in at a lower end. WarnerMedia know some people are already paying that price for less, which means in that sense it represents a better deal. However, with a majority of Americans spending less than $15 a month total on streaming, that again for just one service won’t cut it. HBO Max so far is giving every indication that comparatively speaking, it’s too expensive to sign up.

HBO Max isn’t currently doing enough to show potential new customers that it will be worth $15 a month, or even $11.99. It’s also unclear what HBO Max will offer in addition to just the content. HBO Max’s original content should be alluring eventually, but it’s in short supply at the launch. WarnerMedia also hasn’t announced if 4K content will be available, which Netflix has offered for years. Finally, they haven’t provided information about potential family plans and if streamers will have the ability to view on multiple devices with separate profiles for each user. This customization and sharing is part of what makes other platforms worth their price and so user friendly.

HBO Max couldn’t have predicted a global pandemic and recession occurring at its launch but it will have an impact. Over 40 million Americans are out of work and wary of unnecessary new expenses, especially anything viewed as a luxury. While HBO is hoping to bring customers over from HBO Now, subscribers may take this as an opportunity to cut back on the extra spending. While HBO Max boasts over 10 thousand streaming hours of content at launch, it sounds more impressive than it is. Netflix has over three times that amount and Amazon Prime offers twice as much as HBO Max. 

HBO Max has a steep hill to climb if it wants to compete with the top streaming platforms. The company needed to bring more to the table with more clarity to appeal to new customers from the onset. It’s yet to be seen if the price will be worth it in the long run, but for right now, HBO Max is too expensive with too little to offer to justify the money.

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