In the streaming wars to come, WarnerMedia will rely on sheer tonnage of heavy artillery. That much was clear Tuesday as the AT&T media arm unveiled to investors its plans for HBO Max, the dire…
will launch with every Batman and Superman movie ever made and in its first year premiere 50 new series from a slate of originals designed to skew younger and more female than old-school HBO — whose content will also be part of Max.
Thus Tuesday’s presentation made clear both the strength of WarnerMedia’s play and the principle challenge it faces going forward. HBO Max will effectively supplant existing streamers HBO Now and HBO Go — even though WarnerMedia has not indicated indicated that either will wind down as Max ramps up. As such, Max enters the streaming wars with a base of 34 million existing U.S. HBO subscribers.
An undefined chunk of that revenue is, according to Stankey, set to come from an ad-supported option that will roll out in 2021. But projections still rely on 16 million U.S. consumers who have for years declined ample opportunity to pay roughly $15 a month for HBO deciding that the new Max content offering is enough to make them subscribe. Paying $14.99 for a new version of something that you previously decided you could live without is a different proposition than paying $6.
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