Discovery+ Price Increase Takes Effect Following Skydance Merger Closure

Streaming subscribers are familiar with the routine: a service announces a price increase, and soon after, the new rate appears on their bill. However, this time, the context is quite different. The latest hike comes from a service whose role within a newly merged media giant remains uncertain.

Discovery+ has revealed a price increase for US customers, effective Tuesday, October 13. The ad-supported plan will rise by $1 to $6.99 per month, while the ad-free plan will increase by $2 to $11.99 per month. This marks the first noticeable change for the service since the merger of Paramount and Warner Bros. Discovery was finalized, forming Skydance Corp.

The new pricing will apply immediately to new subscriptions, while existing subscribers will receive a 30-day notice. Updated rates will appear on billing statements on or after November 12. For current subscribers, this means a monthly bill that is $1 or $2 higher.

The merger between Paramount and Warner Bros. Discovery, valued at $110 billion, officially closed on Tuesday, October 6, after a series of twists. This included a bidding war with Netflix and legal challenges from 12 state attorneys general and the Writers Guild of America. The deal received approval from regulators in 68 jurisdictions, including the US Department of Justice and the FCC.

The newly formed company oversees several streaming services, including Paramount+, Pluto TV, HBO Max, and Discovery+, as well as networks like CBS, HBO, CNN, and MTV. It also manages a vast library that features titles like ‘Harry Potter’, the DC Universe, ‘Game of Thrones’, and ‘SpongeBob SquarePants’. Commitments made during the merger include investing $1.5 billion in domestic film and TV production over five years and releasing at least 30 films annually in theaters.

The timing of this price increase raises questions about whether the new leadership is behind the change. A report from Variety, citing a source, suggests that the price hike was likely planned well before the merger’s completion, indicating that the timing may be coincidental. Some reports have also noted that the company has characterized the increase as unrelated to the merger.

Nevertheless, the increase comes at a time of heightened scrutiny, and subscribers will be closely monitoring future developments. Discovery+ was previously part of Warner Bros. Discovery’s direct-to-consumer division, and its future under Skydance remains unclear.

The service is the streaming home for content from Discovery, HGTV, Food Network, TLC, ID, Animal Planet, and Magnolia Network, along with select CNN specials. Popular shows include ’90 Day Fiancé’, ‘Sister Wives’, ‘Ghost Adventures’, ‘Expedition Unknown’, and ‘Deadliest Catch’. A portion of its catalog is also available on HBO Max.

As of August, Antenna estimated that there were 4.9 million paying Discovery+ subscribers in the US, with approximately half on the ad-supported plan. The company last reported 24 million global subscribers in March 2022, prior to the Warner Bros. and Discovery merger. Executives have previously described the service as a profitable venture.

Skydance chairman and CEO David Ellison has indicated that the company plans to eventually merge HBO Max and Paramount+ into a single streaming app. This process will take time, and a bundle of the two apps is likely to be offered in the interim. In its announcement regarding the merger’s closure, the company stated that consumers can expect significant enhancements to its direct-to-consumer products, which will unify into a single service over time.

Notably, Discovery+ was not mentioned during an October 7 press conference where Ellison and other executives outlined their vision. For now, Skydance is keeping its streaming services as they were prior to the merger. This leaves the long-term future of Discovery+ uncertain, and fans of its reality and lifestyle programming may wonder if it will be integrated into a larger service.

For viewers, the immediate takeaway is clear. New subscribers will incur the higher rates immediately, while current customers have a few weeks before the changes reflect on their bills. Those on the ad-free plan will experience the larger increase, which mirrors a broader trend in the industry of encouraging viewers to opt for ad-supported tiers.

This price hike also fits into the larger narrative of the evolving economics of streaming. As major players consolidate, price increases have become a common strategy for enhancing margins, and subscribers are increasingly evaluating which services are worth retaining. Whether Discovery+ will remain a standalone offering or become part of a larger bundle, its new pricing serves as a reminder of the rapidly changing landscape.

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