Warner Bros Discovery, the parent company of Max streaming platform, is considering additional cost-cutting measures and a potential price hike for its streaming service. The company is exploring options such as layoffs and budget cuts in marketing and technology departments. Warner Bros Discovery aims to achieve $1 billion in earnings from Max and Discovery+ streaming services in the coming year. The starting price for Max's ad-supported plan is currently $9.99 per month. The company has faced challenges due to the Hollywood strikes and a weak advertising market.
In other streaming news, Spotify has announced a price increase for its premium plans in the U.S. The individual subscription to Spotify's premium plan will now cost $12 per month, up from $11. The duo plan is set at $17 per month, up from $15, and the family plan will cost $20 per month, up from $17. Spotify defended the cost hikes, stating that they will help the company invest in developing its products and features. The reduced marketing spending has impacted the number of monthly active users on the platform. Some subscribers are frustrated with the price increases and want Spotify to focus solely on music. Spotify's Q1 2024 earnings report showed its highest quarterly profit ever, but it fell short of its user goal. Spotify CEO Daniel Ek called 2024 the company's 'year of monetization' and emphasized revenue growth and margin expansion. The announcement of price changes follows Spotify's decision to discontinue its Car Thing hardware. Spotify stock rose 5.5% on news of the subscription price increase.
YouTube is also making moves in the streaming industry. The platform is expanding its subscription options and introducing new AI-powered features. YouTube Premium plans currently include Individual, Family, and Student options. The Individual plan, priced at $13.99 per month, offers ad-free viewing, background play, and access to YouTube Music Premium. The Family plan, priced at $22.99 per month, allows up to six family members to share the benefits of the Individual plan. The Student plan, priced at $7.99 per month, offers all the benefits of the Individual plan at a discounted rate for eligible students.
To enhance the user experience for Premium subscribers, YouTube is introducing new features. One of these features is an AI-powered 'jump ahead' feature, which uses machine learning to predict when users want to skip parts of a video and allows them to jump to the relevant sections. Another feature is the ability to watch YouTube Shorts in picture-in-picture mode, providing a more immersive viewing experience. Premium subscribers will also have access to experimental features such as automatic download of Shorts, a conversational AI assistant, and a redesigned watch page on the desktop. These updates demonstrate YouTube's commitment to improving its platform and providing added value to its subscribers.
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