HBO Max Takes Shape

In May 2020, AT&T's WarnerMedia division plans to launch the new video-on-demand service, HBO Max, in the U.S. at a price of 14.99 dollars a month. The company said it is "targeting 50 million domestic subscribers and 75 to 90 million premium subscribers by year-end in 2025 across the U.S., Latin America and Europe."

At launch, AT&T will offer HBO Max to the roughly 10 million HBO subscribers on AT&T distribution platforms, at no additional charge. HBO Now direct-billed users who subscribe directly through HBONow.com will also have access to HBO Max. AT&T customers on premium video, mobile and broadband services will be offered bundles with HBO Max included at no additional charge.

AT&T said HBO Max will launch with 10,000 hours of curated premium content including the entire HBO service, bundled with new "HBO Max Originals" that expand the breadth of the offering targeted at young adults, kids and families.  HBO Max will also pull from WarnerMedia’s 100-year content collection, including library content from Warner Bros., New Line, DC, CNN, TNT, TBS, truTV, Turner Classic Movies, Cartoon Network and Looney Tunes, while offering third party series and movies.

Within the first year of launch, WarnerMedia plans to expand the service to include an advertising-supported option. The company also intends to provide subscribers with "unique live, interactive and special event programming" in the future.

AT&T says it will make an incremental investment of between 1.5 billion and 2 billion US dollars during 2020 in HBO Max.  That investment includes spending on new content, foregone licensing revenue of content, operating expenses for the technology platform, and marketing. Source: AT&T press release