Warner Bros. Discovery hiking Max price, mulling layoffs: report

Warner Bros. Discovery is looking at additional opportunities for cost-cutting and raising prices for its Max streaming platform, Bloomberg News reported Wednesday, citing people with knowledge of the matter.

The cost-cutting plans could include possible layoffs at the media company, which has already eliminated more than 2,000 positions over the past year, according to the report.

The company’s streaming business, which includes Max and Discovery+, could see hundreds of millions of dollars in budget cuts, mostly in marketing and technology, Bloomberg News reported.

Warner Bros Discovery — which also owns ratings-challenged CNN — has decided to raise subscription fees as it seeks to reach $1 billion in earnings from the Max and Discovery+ streaming services next year, the report said.

Max’s starting price for US subscribers is $9.99 a month for the ad-supported plan.

The company did not immediately respond to a Reuters request for comment.

Warner Bros Discovery has been impacted by the lingering effects of the twin Hollywood strikes last year and a weak advertising market.

The company has focused on reducing its debt burden and improve cash flow. It ended 2023 with $4.3 billion of cash in hand and $44.2 billion of gross debt.

Separately, Walt Disney and Warner announced they will offer a bundle of the Disney+, Hulu and Max streaming services starting this summer.