Warner Bros Discovery plans new cost cuts, hike in Max price, Bloomberg reports

(Reuters) -Warner Bros Discovery is looking at additional opportunities for cost-cutting and raising prices for its Max streaming platform, Bloomberg News reported on 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 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 U.S. 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.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber)