WBD launches Max, offers expanded 4K content on premium ad-free tier

Warner Bros. Discovery on Tuesday launched Max, its revamped subscription streaming service that replaces the previous HBO Max app and integrates content from Discovery+.

The Max service offers an expansive library including HBO content, Warner Bros. films, the DC Universe, as well as home, reality and lifestyle content from brands like HGTV, Food Network, Discovery Channel and more.

Max is offering three tiers, including an ad-lite, an ad-free and a premium plan. Existing HBO Max subscribers get access to Max at the same price as their existing subscription. Here are the plans and pricing:

  • Max ad-lite: $9.99 per month/$99.99 per year, offers two concurrent streams, 1080p resolution, 5.1 surround sound quality, no offline downloads.
  • Max ad-free: $15.99 per month/$149.99 per year, offers two concurrent streams, 1080p resolution, 5.1 surround sound and 30 offline downloads.
  • Max Ultimate ad-free: $19.99 per month/$199.99 per year, offers four concurrent streams, up to 4K UHD resolution, Dolby Atmos sound quality, 100 offline downloads.

WBD on Monday announced that at launch Max’s new premium plan (which wasn’t an option for HBO Max) will offer nearly 8x more films and episodes of 4K UHD content than HBO Max, including popular titles such as Game of Thrones, The Last of Us, Harry Potter, The Lord of the Rings trilogy, and more. WBD said existing HBO Max subscribers will still have access to their current plan features for at least six months after launch.

“We understand the value of offering our users a cinematic playback experience and to that end, we’ve implemented more advanced technology workflows that allow us to release more 4K content in a faster, more efficient way,” said WBD’s Sudheer Sirivara in a statement. “Max will offer more than 1,000 films and episodes in 4K at launch, and we’ll be adding more every month as we move forward.” 

In addition, all Warner Bros. movies released in 2023 and going forward will be available in the higher quality 4K UHD when they come to the Max streaming service after theatrical windows.

Starting Tuesday, WBD said “a large portion” of existing HBO Max subs will see their apps automatically updated, while some will be prompted to download the new updated Max app. Current HBO Max subs will see their previous plans, profiles, avatars, settings, “Continue Watching” and “My List” titles carry over into the new app.

In combining HBO Max and Discovery+ (the latter which has a large subscriber base and will continue to be offered as a standalone streaming service), WBD has made the pitch, alongside the tagline “The one to watch,” that its broader service offers something for everyone in the household while also making product improvements to enhance the user and advertiser experience.

The launch comes as Deloitte’s latest Digital Media Trends survey finds consumers, particularly millennials, are showing signs of subscription fatigue and wallet-consciousness, and in turn seeking lower-cost options that offer better value propositions.

According to the survey, nearly half of consumers say they pay too much for SVOD services they use, while around a third plan to reduce their number of entertainment subscriptions. This comes as separately a recent Hub Entertainment Research survey found that video subscription stacking declined for the first time in five years.

Churn is also higher among younger generations, according to Deloitte, which found churn of 57% for Gen Z and 62% for Millennial consumers on paid SVOD services over a six-month period, compared to average churn of about 40%. It’s worth noting that around 25% of subscribers participate in so-called “churn and return” – or cancel and then come back to a service – within a six month period.

Tony Marlow, CMO of LG Ad Solutions, weighed in on the launch, saying ad load and library depth and breadth is key for users TV experience.

“In today's media landscape where a comprehensive content library is a significant asset, Max is repositioning itself to appeal to a wider audience than either prior entity could have achieved individually. This is being realized through the combination of original programming with popular content from an expansive library,” Marlow said in emailed commentary.

He also pointed to the ongoing major WGA Hollywood writers strike as an example of why a diversified content library is important.

“The recent strike underscores the importance of maintaining such a diverse content collection,” Marlow continued. “Through a strategic blend of reduced ad load, varied content from its library, and tiered pricing, Max is attempting to cater to a very broad array of viewer preferences.”

Still, streaming expert J. Christopher Hamilton, an entertainment attorney and Syracuse University professor, said in emailed commentary that despite changes such as the Max launch, he anticipates broader happenings in the media industry around cost cutting, layoffs and content streamlining to continue on a familiar trajectory.

“As things continue to change amongst the media and tech juggernauts most things will remain the same such as cost cutting, cost containment, and agendas that support business growth amid a declining US economy, a massive WGA labor strike and the slow death of cable and broadcast television,” Hamilton commented. “Therefore, we will continue to see layoffs, shows being purged from streaming platforms to save on residual payments and massive swings to capture new domestic and international market share.”