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The long-in-the-works ad-supported tier of HBO Max will roll out in June, a little more than a year after the streamer first debuted, AT&T said today.
Top line
Parent company AT&T also told investors it now expects to have between 120 million and 150 million HBO Max and HBO global subscribers by the end of 2025. That’s an increase from the 75-90 million projection the company shared with investors in October 2019.
Between the lines
An HBO Max subscription is currently $14.99 per month. That’s the same price that cable subscribers pay for HBO; they receive HBO Max for free with their MVPD subscription.
Offering a cheaper alternative to its $15 service should allow the service to more rapidly scale and meet its new, more ambitious subscriber goals. HBO Max had 30.8 million total wholesale subscribers by the end of the fourth quarter. Combined, HBO and HBO Max have 41.5 million subscribers domestically.
Bottom line
AT&T continues to pour money into HBO Max as it looks to build out the service ahead of the ad-supported tier debut and an international rollout later in the year. Last year, the company invested about $2.1 billion into the growing streaming service.
Today’s news came ahead of AT&T’s investors event set for later this morning, during which the company is expected to elaborate on those plans and provide a price point for the cheaper, ad-supported service.
