AT&T Inc is intentions of launching HBO Max streaming service that is planned to be launched in May next year. The move by AT&T is an aggressive one as the planned streaming service will be available at the HBO’s current price of $15 per month but with a new “Games of Thrones” series that will be giving a tough competition to the rivals like Apple, Disney and Netflix but it will also be the game changer for the streaming TV service future.
Investors as well financial analysts were expecting a higher price, at the attendees of WarnerMedia presentation on Tuesday were surprised by by AT&T for not increasing price of its HBO Max.
AT&T is expecting HBO Max not only to be reaching about 75 million to 90 million subscribers worldwide by 2025, including roughly 50 million subscribers from the United States, but also is in expectations of new streaming service to be generating nearly $5 billion in U.S. revenue at that time.
As AT&T remained under pressure for spending $134 billion in acquiring and combining satellite TV provider DirecTV and media conglomerate Time Warner, an acquisition spree that burdened second-largest U.S. wireless phone company by subscribers with a huge debt to pay, and current move is of high stake value for the wireless phone company in a market which is already posing increasing competition.
HBO Max’s success will proved to be endorsing element for the AT&T’s strategy of merging original content makers with the platforms that distribute those contents.
In streaming video market, HBO, despite being pioneer in inventing subscription programming of high-end level, is currently been chasing the Netflix that has been enjoying the streaming era as dominating player.
Announced on Monday, AT&T’s quarterly report showed lower media results, but still AT&T is betting on streaming media as it committed an additional investment of up to $4 billion by 2025 to produce original content for HBO Max.