HBO Max is finally throwing the “on” switch, culminating a multi-year, $4 billion journey to join the direct-to-consumer streaming wave. The service’s launch just after midnight E…
If you are an AT&T pay-TV customer currently paying for HBO, you will get free access to HBO Max. Some AT&T wireless customers will also get free access, at least initially. Distribution deals with Charter, Cox, Verizon, Altice, Apple TV, Hulu, YouTube TV, Android, Sony PlayStation, Microsoft Xbox and others have also been set in recent weeks. That means customers of those companies can either upgrade their existing HBO subscriptions at no cost or sign up for $15 a month.
While there is no incremental cost to switch for the 30 million or so existing HBO subscribers in the U.S., new subscribers will be paying the most of any competing streaming service. Apple and Disney are at the low end, at $5 and $7 a month, with Peacock free for Comcast subscribers and $5 a month for others who don’t opt for the ad-free version. Netflix’s most popular plan costs $13 a month.Not this year, but in 2021 an ad-supported tier of HBO Max is expected to launch.
“Success is defined differently for us than it is for others,” Goncalves said. “We’re starting from a different place.” While customers in the recent past had shown an appetite for paying for up to three subscription streaming outlets, Goncalves said WarnerMedia research has shown customers soon will be comfortable with between four and six, at $30 to $40 a month. “We’re investing to be one of those services, but it’s not winner-take all,” he said.While WarnerMedia “did not take the decision lightly” to try to persevere, Goncalves said delaying was never seriously considered.
One reason for staying the course is that AT&T had already delayed the launch at least once. Initially it had signaled its intent to enter the streaming derby by fall 2019, but wound up needing more time given the lengthy challenge of the Time Warner deal by the federal government, along with other factors. Once the company “figured out what kind of house we wanted to build,” requiring a few months to course-correct is reasonable, Goncalves said.
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