Warner Bros. Discovery is considering additional opportunities to reduce costs and increase prices for its Max streaming platform. Bloomberg News reported Wednesday, citing people familiar with the matter.
The cost-cutting plan could reportedly include possible job cuts at the media company, which has already cut more than 2,000 positions over the past year.
The company’s streaming businesses, including Max and Discovery Plus, could see hundreds of millions of dollars in budget cuts, mainly in marketing and technology, according to Bloomberg News.
Warner Bros. Discovery (which also owns CNN, which has also faced ratings issues) aims to achieve $1 billion in revenue next year from its streaming services Max and Discovery+, and is increasing its revenue from subscription fees. The report said the company has decided to increase prices.
Max’s starting price for US subscribers is $9.99 per month for an ad-supported plan.
The company did not respond to Reuters’ request for comment.
Warner Bros. Discovery has been affected by last year’s twin Hollywood strikes and a weak advertising market.
The company is focused on reducing its debt burden and improving its cash flow. As of the end of 2023, the company had cash on hand of $4.3 billion and total debt of $44.2 billion.
Separately, Walt Disney and Warner announced that they will be offering a bundle of Disney+, Hulu, and Max streaming services starting this summer.
