AT&T Surprises Disney and Netflix with HBO Max Price in Domination Battle
AT&T has surprised lots of financial analysts and investors with the HBO Max Price. Before the warner media presentation on Tuesday, lots of Analysts and business experts have expected higher prices for HBO Max, but all of them were shocked on the Warner media Presentation event.
The new HBO Max is expected to reach whooping figures of 75million to 90 million global subscribers by 2025. In that figure, more than 50 million subscribers expected from the United States itself.
This new HBO Max service is expected to generate revenue of around $5 Billion in the U.S. only. The stakes are incredibly high for AT&T, as it’s stuck with the debt of $134 billion acquisition. It spree to combine conglomerate time warner and satellite T.V. provider DirecTV with the wireless phone company by Subscribers.
The success of the HBO Max is in many ways the referendum to the strategy to merge content to distribute it.
HBO has previously invented high-end subscription programming, is now playing catch-up with the dominated streaming platform Netflix.
AT&T Executives said, To compete with Netflix and Disney AT&T has committed to invest upto $4 billion additional charges to the HBO Max content by its grace period 2025. The officials have said this statement just the day after reporting tepid media results of their third Quarter.
This investment of AT&T falls far short of its rival Netflix Inc, but the AT&T and warner media believe that they have enough content with them to get in front of the consumers that are lacking in Walt Disney, Amazon, and Apple Inc.
Recently, Netflix has earned $15 billion in cash on their content Spending in 2019. So, AT&T executives are confident enough to make with the content they have in hand.
John Stankey (Cheif Executive Warner Media) has told HBO Max will be available this spring to 10 million AT&T customers in the USA. Some subscribers will get this at no extra charge.
Sam Hendel, the president of Levin Easterly Partners firm, said that the price is around $14.99 for HBO Max. It has the right balance between not cannibalizing HBO’s revenue base. It also addresses the competitive environment in streaming television as will. As its having robust content, I think investors and consumers will receive it.
Warner Brothers studio has included the entire D.C. universe superhero film franchises from the “Batman” to the recent hit film “Joker” these will be available within the first year of its launch. It has also acquired the rights of “South Park”. Along with that to attract new visitors, warner media executives said that “They will introduce 88 original series in 2021, in that 38 from HBO and 50 in Max Originals” These will attract youngsters.
They also said they are adding popular shows such as “Raised by Wolves” – Adventure, “College girls” – Comedy and more.
Warner Media has also announced 10 New Episodes of “Game of Thrones” Prequel which is called “House of Dragons”. In this series, they will display 300 years before events from the George RR Martin’s famous book “Fire & Blood”.
HBO brand is popularly known for its high-quality programmes, so the latest entry of HBO Max will vigorously competing for household dollars with rivals, Netflix, and Disney.
Warner Media is hoping that its new HBO Max will continue serving HBO’s main group of over 40 audiences and will attract younger viewers who prefer to stream content.
AT&T Cheif Executive Randall Stephenson said “Warner Media is hoping that its new HBO Max will continue serving HBO’s main group of over 40 audiences and will attract younger viewers who prefer to stream content. ” This is not Disney, This, not Netflix this is Uniquely HBO Max.” Let’s see who will win the streaming war in future.