Warner Bros. Discovery (NASDAQ:WBD) has announced an increase in the cost of its ad-free monthly subscription for Discovery+ in the United States and Canada. Effective October 3rd, the price of the monthly subscription has risen from $6.99 to $8.99, plus applicable taxes. However, the price for the ad-lite subscription remains unchanged at $4.99 per month.
In Canada, the new ad-free monthly subscription price for Discovery+ has increased from CAD $6.99 to CAD $8.99, while the ad-lite subscription price has gone up from CAD $4.99 to CAD $5.99.
Current subscribers will experience the price hike during their monthly billing cycle on or after November 2nd. This marks the first time that Discovery+ has raised monthly subscription prices in these regions since its launch in January 2021.
The adjustment in pricing is aimed at enabling Discovery+ to consistently deliver a wide range of compelling content across various genres, including food, home, relationships, true crime, and the paranormal.
Increasing Subscription Rates in the Streaming Industry
The streaming TV industry has become highly competitive, prompting major Hollywood companies to invest significantly in creating their own streaming platforms and content libraries to compete with giants like Netflix (NASDAQ:NFLX). As a result, the cost of participating in the streaming era has been steadily rising.
Streaming companies are faced with the challenge of striking a balance between generating revenue and financing content production to drive subscriber growth. Many streaming giants have already increased their subscription prices and are exploring additional revenue streams such as merchandising and ad-supported tiers.
Netflix, for instance, has raised its subscription prices multiple times since its inception and has implemented restrictions on password sharing, requiring individuals to have their own subscriptions.
Disney’s streaming platforms, including Disney+, Hulu, and ESPN+, have also become more expensive as Disney focuses more on streaming. Disney is set to raise the prices of its ad-free versions of Disney+ and Hulu starting October 12th.
Paramount’s streaming service, Paramount+, increased its monthly charges in June 2027, coinciding with the integration of Showtime into its offerings.
Warner Bros. Discovery is following in the footsteps of other streaming services by cracking down on password sharing, a move expected to boost direct-to-consumer (DTC) subscribers and revenues in the coming quarters.
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