October 28, 2019
AT&T projects WarnerMedia’s HBO Max subscription streaming service launching in early 2020 will top 50 million subscribers by 2025.
Speaking Oct. 28 on the fiscal call, CEO Randal Stephenson reiterated talking points outlined last week by WarnerMedia CEO John Stankey suggesting the SVOD platform will reach 80 million globally.
“This product is going to be very different from any other product you’ve seen in the market before,” Stephenson said, without elaborating.
AT&T is holding an Oct. 29 media day to discuss Max.
The subscriber projections mirror Disney’s plan to attract 60 million subs to its Disney+ service launching Nov. 12.
Netflix and Amazon Prime Video lead the global SVOD market with more than 258 million combined subscribers.
To jumpstart HBO Max consumer traction, WarnerMedia reportedly will migrate existing HBO pay-TV and HBO Now subs to the new service for a free probationary period.
Subscriber stickiness will be key as AT&T’s DirecTV Now online venture has seen subscribers drop the monthly platform since initiating a price hike from the initial $34.99 price point.
DirecTV Now (now called AT&T TV Now) lost 195,000 subs in the most-recent fiscal period to end the quarter with 1.1 million subs.
“Our customer relationships are something any streaming company would want,” Stephenson said.