An ad-supported tier for HBO Max, the streaming service from WarnerMedia, is coming this June. WarnerMedia parent AT&T has yet to reveal pricing information.
“Most People on This Planet Are Not Wealthy”
According to The Verge, WarnerMedia CEO Jason Kilar told analysts gathered for AT&T’s analyst day that the upcoming offering will have some restrictions. For example, the cheaper option won’t include access to same-day theatrical releases.
As for the ads, the new tier will not play ads on original HBO titles like Euphoria, The Sopranos, and Game of Thrones. Sports will not be coming to HBO Max this year, Kilar said.
The WarnerMedia chief previously noted that HBO Max needs to offer a cheaper option because “it turns out that most people on this planet are not wealthy,” as reported by Variety.
And so if we can wake up and use price and be able to kind of invent and do things elegantly through advertising to reduce the price of a service, I think that’s a fantastic thing for fans.
On top of that, the streaming service will soon be available outside the US for the first time following its May 2020 debut.
Streaming Outside of the US for the First Time
According to a press release on the AT&T website, HBO Max is scheduled to launch in 60 markets outside of the US later in the year. Pricing announcements for these new markets and other details will be made in the coming months, the company has said.
As WarnerMedia previously announced, the streaming service will be launching across Latin America and the Caribbean in June 2021. The new announcement breaks that expansion down as follows: 39 territories in Latin America and the Caribbean in late June and 21 territories in Europe in the second half of 2021.
HBO and HBO Max had a combined 41 million subscribers at the end of 2020. However, less than half of HBO’s 37.7 million cable subscribers have taken their free HBO Max upgrade.
AT&T thinks it will end 2021 with between 67 and 70 million subscribers worldwide, up from about 61 million at the end of 2020. Revenues from HBO businesses are projected to more than double over the next five years. The company expects a combined 120-150 million HBO Max and HBO subscribers by 2025, up from the 75-90 million it previously projected.
With rival Disney+ recently surpassing one hundred million paid subscribers, executives are betting that a cheaper tier will help attract more subscribers as streaming wars rage on.
Is HBO Max Worth the $15 Subscription Fee?
At 14.99 per month, HBO Max is significantly pricier than many rival services.
HBO Max costs much more than Disney+ ($7 per month, $70 per year) and Apple TV+ ($4 per month). It’s roughly comparable to the standard Netflix subscription ($14 per month).
HBO Max isn’t very competitive in terms of pricing to Hulu either—Hulu offers a vast content library and plans, starting at $6 per month. As for Amazon Prime, it’s $119 per year (the sum translates into $13 per month). But aside from Prime Video, an Amazon Prime membership also gets you free shipping, access to special Amazon deals, and other perks.
HBO Max offers everything included in HBO NOW, plus exclusive content like Friends, Warner Bros. movies, and more. AT&T is in the process of replacing HBO NOW with HBO Max though the HBO NOW website and apps continue to be available.