HBO Max, the streaming service operated by AT&T’s (T -0.09%) WarnerMedia will roll out a lower-cost version of its platform in 2021.
John Stankey, AT&T’s new CEO who takes over the role on July 1, told CNBC in an interview an advertising-supported version of HBO Max is in the works. As it stands the service, which went live Wednesday costs $14.99 a month, the highest of the offerings on the market. HBO Max is taking on Netflix, Amazon’s Prime Video, and Walt Disney’s Disney + in the streaming content market.
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Stankey said by offering a subscription service and a lower cost one that has ads, the company is giving consumers what they want: choice. It’s not clear how much cheaper the ad-supported service will ultimately be. Disney+ costs $6.99 a month while Netflix’s most expensive subscription plan comes in at $12.99 a month.
The new entrance into the streaming wars launched with 10,000 hours of premium content including all of HBO’s service, movies and TV series from Warner Bros, and new Max Originals. Heading into launch date HBO Max was able to sign key distributors including Apple, Google, Hulu, and YouTube TV. But it failed to reach distribution deals with Roku, the leading streaming platform with about 40 million active accounts, Amazon Fire TV, and Comcast, one of the nation’s biggest cable providers. That leaves millions of potential customers HBO Max won’t have access to, at least for now.
