Entertainment giant Warner Bros Discovery (WBD) is increasing the subscription cost of its Discovery+ service by $1 in the U.S. No changes are made for the streaming plans in the UK. Following the change, the ad-tiered plan will cost $5.99 per month and the ad-free plan will cost $9.99 per month. This is the first price hike by a streaming service provider in 2025. Streaming service providers such as Comcast (CMCSA) and Paramount (PARA) have also been resorting to price hikes to improve their profitability amid slowing subscriber growth and growing competition.
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Here Are the Details of the Price Hike
New subscribers pay as per the revised prices from January 7 itself, while the existing D+ subscribers will pay the higher price from their next billing cycle, giving them a chance to either continue with the plan or opt out. WBD did not increase the price for Discovery+ in 2024. Its last hike of $2 was seen in October 2023 for its ad-free plan.
WBD also has a bundled pack of Max services that combines Discovery, HBO, and other premium content offerings. Max boasts more subscribers than D+, but the latter has been profitable for some time now. The break-up of subscribers from both services is not made public. Discovery+ is sort of a niche streaming service that features renowned shows such as the 90 Day franchise and My 600-lb Life.
Hedge Funds Are Offloading WBD Stock
According to TipRanks’ Hedge Funds Trading Activity tool, hedge funds are offloading Warner Bros Discovery stock. Warner Bros is struck by the dimming viewership of legacy TV networks. Plus, advertising and distribution revenues have been under pressure amid heated competition.
WBD has a Very Negative Hedge Fund Confidence Signal since several hedge funds decreased their WBD holdings by 17.8 million shares in the last quarter.
Is WBD a Good Buy?
Wall Street remains split on Warner Bros Discovery stock. On TipRanks, WBD stock has a Moderate Buy consensus rating based on ten Buys, six Holds, and one Sell rating. Also, the average Warner Bros Discovery price target of $12.50 implies 18.9% upside potential from current levels. In the past year, WBD stock has lost 7.8% of its value.
