In October 2019, AT&T set a target of hitting 50 million subscribers in the US by 2025, a bar lower than the HBO cable station that had an estimated 33 million subscribers a few months before the broadcast service was launched in May of that year. . That goal seems achievable right now.
AT&T, which won HBO and all WarnerMedia with $ 85 billion in 2018, has bet that it can challenge the broadcast of giants like Netflix Inc. It’s a rising battle – Netflix already has more than 200 million users – but the latest speculation helped reassure investors that AT&T is moving forward. Its shares gained at least 4.5% on Friday.
“We expect HBO Max and HBO revenues to double over the next five years to $ 15 billion,” WarnerMedia chief executive Jason Kilar said in a statement.
HBO Max will have 67 to 70 million subscribers worldwide by the end of 2021, AT&T predicted. The company had predicted 75 to 90 million subscribers worldwide by 2025.
AT&T had a marketing challenge with HBO Max. It sells a new streaming service next to the traditional HBO cable channel, which many customers get from their paid TV provider. Both cost the same, but the HBO Max has too many programs.
HBO Max and HBO had more than 41 million subscribers combined at the end of the fourth quarter. Of that number, 17.2 million people worked on their HBO Max accounts.
HBO Max News highlighted an investor presentation that set out AT&T’s goals for its fiber-optic network. It plans to have communications available in 3 million homes by the end of the year, from the 2 million previously predicted. A Dallas-based company has left its financial position unchanged.
All media giants are vying for broadcast subscribers, but Netflix and Walt Disney Co are the main rivals. Netflix is ”‹”‹the market leader, and Disney has the fastest growing service, Disney +, which has reached 100 million users in just 16 months after its launch.
But because of a higher price than the average HBO Max – $ 15 a month – it costs more than some broadcast competitors. In fact, the HBO Max is close to the top of the industry that way, says Kilar, without saying where other companies are based.
Number 2 In Salary?
“Based on publicly available data and analysts’ limitations, we believe it is already the 2nd largest revenue-generating revenue video search service in the U.S.,” said Kilar.
Expanding the HBO Max to other countries is a very expensive task, especially as the company is increasing the production of local market shows. Payments from those costs will rise by 2022, says AT&T, putting it on track to split even by 2025.
Kilar said ten months after the launch of the HBO Max was already earning more money than HBO, which first appeared 50 years ago.
And finally, hopefully the success of HBO Max will bring more customers into AT&T’s big business: mobile services.
Cheap HBO Max
AT&T said it would share more details about the ad-supported version of HBO Max over time, but said on Friday that the venue would be very similar to HBO Max, only with ads. Cheap app will not include new movie releases or ads in the actual HBO series.
HBO Max saw an increase in subscribers late last year after reaching a distribution agreement with Roku Inc., a maker of top-notch broadcast boxes. The decision to allow local viewers to watch the “Wonder Woman 1984” show on the same day as it opened in theaters also brought momentum.
WarnerMedia announced in December that it would take the same approach with all of its major movies by 2021. That sparked an uproar in Hollywood, which has long protected the so-called theatrical widow – a time when the movie only played in theaters. the company will not change course. Movie theaters are still operating at a reduced rate, and some markets, such as Los Angeles, are just beginning to open.
“We stick to our plan,” Kilar said in her interview Friday.
By Gerry Smith and Scott Moritz