Full Breakdown
Skydance Raises Discovery+ Subscription Prices After Merger
By Drooid · · How we work
Core Event: Discovery+ price hike announced
Discovery+, the streaming service now owned by Skydance, increased its monthly fees. The ad-supported tier moved from $5.99 to $6.99, while the ad-free tier rose from $9.99 to $11.99. The higher rates apply immediately to new subscribers; existing customers receive a 30-day notice and see the new charges on bills issued in mid-November.
Background & Context: Merger, debt load, and prior pricing
A week after the formation of Skydance—a corporation created by the merger of Paramount and Warner Bros. Discovery—the company announced the price changes. Discovery+ launched in 2021 at $4.99 for the ad-supported tier and $6.99 for ad-free, meaning the cheapest tier has risen roughly 40 % and the premium tier about 72 % over six years. Before the merger, Warner Bros. Discovery operated HBO Max and Discovery+, while Paramount ran Paramount+. The three services remain separate, though Skydance chairman and chief executive David Ellison has indicated plans to eventually combine Discovery+ with HBO Max. Skydance carries approximately $80 billion in debt and is targeting more than $6 billion in cost savings over the next three years, primarily through technology, procurement, marketing and real-estate efficiencies rather than layoffs.
Official Statements & Responses
A Skydance spokesperson said the price adjustments were planned several months before the merger was finalized. Ellison has reiterated his intention to merge the two platforms into a single service, but he offered no timeline or pricing details for that future offering.
Data & Statistics
- New Discovery+ rates: $6.99 (ad-supported), $11.99 (ad-free).
- Prior rates (2021): $4.99 and $6.99 respectively.
- Percentage increase since launch: ~40 % (ad-supported), ~72 % (ad-free).
- Skydance debt: about $80 billion.
- Cost-saving goal: >$6 billion over three years.
- Competing services: HBO Max $10.99–$22.99, Paramount+ $8.99–$13.99.
Why It Matters: Industry pressure and financial context
Industry observers attribute the hike to Skydance’s sizable debt burden, suggesting further price increases across its streaming portfolio are likely. The move aligns with a broader trend of major platforms—including Netflix, Apple TV, Hulu, Disney+ and Amazon Prime Video—raising fees to offset rising programming and talent costs. As Skydance seeks to consolidate its streaming assets, the price changes signal both financial pressure on the company and a shifting cost landscape for U.S. consumers.