The streaming wars are heating up, and Warner Bros is taking decisive action to stay competitive.
Today, the media company announced that it is dropping the price of its Max subscription service, which will now come with ads, in a bid to keep up with its rivals. The move comes amid a fierce battle between the leading streaming services like Netflix, Disney, and Apple, and shows that the company is willing to do what it takes to stay in the fight.
The news follows the recent announcements of Warnermedia’s HBO Max, Apple’s Apple TV+, Disney’s Disney+, and Amazon Prime Video’s roll out of ad-supported streaming. At $14.99 a month – the same price as a Netflix subscription – HBO Max had a significant cost advantage over its rivals, but the ad-supported tier makes HBO Max more affordable for those who don’t want to pay for a subscription.
“Subscribers will have the ability to stream or download popular shows, movies and originals from HBO Max at an affordable price with the added bonus of ad-supported streaming,” said Robert Greenblatt, chairman of Warner Bros.’ direct-to-consumer and international division.
Ad-supported streaming is likely to become a key component of the streaming wars, as companies battle to offer the most affordable and accessible options. It remains to be seen whether other top streaming companies will follow suit and introduce an ad-supported tier, but it’s clear that the battle is just getting started and Warner Bros is well positioned to bring a strong competitor into the mix.
Only time will tell if Warnermedia’s move will help them gain the advantage in the ongoing streaming wars, but by introducing an ad-supported tier at a lower price, they’re certainly giving their customers an attractive option that could sway some viewers to stay with the company.