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Warner Bros. Discovery's (WBD) Max Unveils Subscription Offer
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Warner Bros. Discovery’s (WBD - Free Report) Max announced that it is providing a Black Friday promotion, giving new subscribers a 70% discount on its ad-supported plan for the initial six months. This promotion is an effort to attract more subscribers to its budget-friendly and ad-driven plans.
From Nov 20 to Nov 27, Max subscribers can enroll in the ad-supported streaming service for a discounted rate of $2.99 per month as part of the Black Friday promotion.
The regular cost for an ad-supported Max subscription is typically $9.99 per month. For users who prefer an ad-free experience, Max offers plans priced at $15.99 and $19.99 per month. This is expected to aid subscriber growth in the upcoming quarters.
The Zacks Consensus Estimate for WBD’s 2023 total Direct-to-Consumer subscribers is pegged at 96,462, indicating year-over-year growth of 0.37%. The Zacks Consensus Estimate for revenues is pegged at $41.4 billion, indicating year-over-year growth of 22.42%.
Streaming Giants Focus on Ad-Supported Streaming to Boost Subscribers
Streaming services have been increasing subscription fees and placing greater emphasis on plans that incorporate advertisements. The appeal of lower prices attracts consumers and the additional revenues generated from advertising assist in compensating for the reduced subscription costs.
The Video on Demand landscape faces increasing competition as new streaming services are introduced, prompting households to frequently switch, replace and stack services.
According to a report by Kantar, Netflix (NFLX - Free Report) maintains its dominant position by remaining in almost two-thirds of streaming households and 49% of these households consider NFLX as their primary streaming subscription.
Netflix continues to lead the industry as its ad-supported tier continues to grow with one in three new subscribers across markets. The implementation of password-sharing restrictions has further spurred growth, particularly in the United States and Germany.
Disney’s (DIS - Free Report) streaming platform, Disney+, had a notably robust quarter, boosted by a recent promotional pricing initiative in Europe. This highlights the success of its strategic investments in key markets. Disney intends to decrease the prices of ad-supported tiers to attract more subscribers.
Amazon’s (AMZN - Free Report) online streaming service provider, Prime Video, is preparing to introduce its ad-supported platform, emphasizing the company's effort to generate additional revenues through Prime Video. As the holiday quarter commences, Amazon is relying on the robust performance of its retail and delivery business to encourage more households to subscribe to Prime Membership, thereby boosting engagement with the Prime Video service.
Warner Bros. Discovery recently announced that it would no longer be offering certain perks like 4K to its legacy ad-free subscribers. The company is removing premium perks to offer its ad-supported services at a cheaper rate and attract more customers.
Image: Shutterstock
Warner Bros. Discovery's (WBD) Max Unveils Subscription Offer
Warner Bros. Discovery’s (WBD - Free Report) Max announced that it is providing a Black Friday promotion, giving new subscribers a 70% discount on its ad-supported plan for the initial six months. This promotion is an effort to attract more subscribers to its budget-friendly and ad-driven plans.
From Nov 20 to Nov 27, Max subscribers can enroll in the ad-supported streaming service for a discounted rate of $2.99 per month as part of the Black Friday promotion.
The regular cost for an ad-supported Max subscription is typically $9.99 per month. For users who prefer an ad-free experience, Max offers plans priced at $15.99 and $19.99 per month. This is expected to aid subscriber growth in the upcoming quarters.
The Zacks Consensus Estimate for WBD’s 2023 total Direct-to-Consumer subscribers is pegged at 96,462, indicating year-over-year growth of 0.37%. The Zacks Consensus Estimate for revenues is pegged at $41.4 billion, indicating year-over-year growth of 22.42%.
Warner Bros. Discovery, Inc. Price and Consensus
Warner Bros. Discovery, Inc. price-consensus-chart | Warner Bros. Discovery, Inc. Quote
Streaming Giants Focus on Ad-Supported Streaming to Boost Subscribers
Streaming services have been increasing subscription fees and placing greater emphasis on plans that incorporate advertisements. The appeal of lower prices attracts consumers and the additional revenues generated from advertising assist in compensating for the reduced subscription costs.
The Video on Demand landscape faces increasing competition as new streaming services are introduced, prompting households to frequently switch, replace and stack services.
According to a report by Kantar, Netflix (NFLX - Free Report) maintains its dominant position by remaining in almost two-thirds of streaming households and 49% of these households consider NFLX as their primary streaming subscription.
Netflix continues to lead the industry as its ad-supported tier continues to grow with one in three new subscribers across markets. The implementation of password-sharing restrictions has further spurred growth, particularly in the United States and Germany.
Disney’s (DIS - Free Report) streaming platform, Disney+, had a notably robust quarter, boosted by a recent promotional pricing initiative in Europe. This highlights the success of its strategic investments in key markets. Disney intends to decrease the prices of ad-supported tiers to attract more subscribers.
Amazon’s (AMZN - Free Report) online streaming service provider, Prime Video, is preparing to introduce its ad-supported platform, emphasizing the company's effort to generate additional revenues through Prime Video. As the holiday quarter commences, Amazon is relying on the robust performance of its retail and delivery business to encourage more households to subscribe to Prime Membership, thereby boosting engagement with the Prime Video service.
Warner Bros. Discovery recently announced that it would no longer be offering certain perks like 4K to its legacy ad-free subscribers. The company is removing premium perks to offer its ad-supported services at a cheaper rate and attract more customers.
Shares of this Zacks Rank #3 (Hold) company have gained 13.3% year to date compared with the Zacks Consumer Discretionary sector’s rise of 9.8% due to the implementation of cost-cutting strategies, which help the company expand margins. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.