Distributors share revenue with HBO for subscriptions sold at anywhere from 30%-60% depending on size, the people said. Pay-TV distributors haven't been pleased with AT&T's decision to sell an advertising-supported HBO product at $5 less than HBO, according to people familiar with the matter. Kilar said last year the movies would appear in the ad-free version of HBO Max. Kilar said last month the advertising-supported version of HBO Max won't include WarnerMedia's 2021 slate of feature films on the same day they're released in theaters.
Early last year, WarnerMedia had preliminarily considered selling an advertising-supported product of just HBO Max content for $4.99 per month, but nixed that idea for a combined product with HBO, said two of the people, who asked not to be named because the discussions were private. WarnerMedia plans to only attach advertisements to programming that's exclusively available on HBO Max and won't muddy HBO shows with commercials, WarnerMedia CEO Jason Kilar has said. Giving consumers the choice of which version of HBO Max they prefer "is a strength" and "by no means an admission of something didn't work out the right way. "Whether a customer chooses to buy the ad-supported product or buy the straight subscription product, it's accretive in the same ways to our business," Stankey said. has been "really impressive." He also noted the ad-supported HBO Max will expand the product's potential audience to more cost-conscious consumers. AT&T expects HBO Max and HBO to have between 120 million and 150 million subscribers by the end of 2025.ĪT&T Chief Executive John Stankey told CNBC last week that HBO and HBO Max's average revenue per user of $11.72 in the U.S. An advertising-supported service at $9.99 will allow HBO Max to stand out as significantly cheaper than Netflix, whose standard price is $13.99 per month. AT&T has completely restructured WarnerMedia to better compete against Netflix and other streaming services. Personal Loans for 670 Credit Score or LowerĪT&T said last week HBO and HBO Max have a combined 44.2 million U.S. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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