Stankey: HBO Max, AT&T TV Now Merger Possible

With WarnerMedia staking much of its future on over-the-top video and digital distribution, the May 27 launch of subscription streaming platform HBO Max could eventually spearhead a unified OTT product offering with digital TV service AT&T TV Now, a senior executive told a virtual investor event.

Speaking May 13 remotely on the JP Morgan Technology, Media and Communications confab, John Stankey, who is set to replace AT&T CEO Randall Stephenson in July, said the two software-based platforms would ideally become linked in the future. The move mirrors WarnerMedia melding existing HBO Now and HBO Go subscribers into Max.

“You want a platform that can distribute both [services],” Stankey said. “So AT&T being software driven, HBO Max being software driven, user interface capabilities, bundling, price start to move together. I think we’re at a very natural place to see that begin to occur and our TV business and our SVOD business start to become one as we get out over the next couple of years.”

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Indeed, distribution is key to Max (and AT&T TV Now) surviving in the crowding OTT universe. The latter has already gone through two name changes from DirecTV Now, which saw initial consumer interest plummet following pricing changes.

Max is launching without an assist from Amazon Fire TV. Recent data contends Roku has 51% of the streaming media device market in the U.S., and about 30% of the streaming stick market. By comparison, Fire TV has less than 30% of the U.S. streaming device market, but 57% of the streaming stick market.

It also remains unclear whether the $14.99 Max will be offered on Amazon Channels — the e-commerce behemoth’s shrewd platform offering third-party SVOD service to more than 100 million Prime members. Notably, Amazon Channels was credited with driving subscriber growth to HBO Now following its 2015 launch. But in exchange for the landing on Channels, Amazon reportedly extracts significant compensation from services, in addition to keeping user data.

Regardless, myriad services such Starz OTT, BritBox, Acorn TV, Showtime OTT, CBSN and Epix market themselves on Channels.

2 thoughts on “Stankey: HBO Max, AT&T TV Now Merger Possible”

  1. Well AT&T TV can’t fix their issues but rolling out HBO Max…right now you can’t stream or play back any content.

    How’s this going to work when they leave us with no streaming capability during a pandemic lockdown?

    Yes it’s been weeks…the message we get is “we’re aware of the problem and we’re working on it”.

  2. AT&T failling 5G experiment will cost the company billions,
    What a mess, greed and incompetence at the highest levels

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