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State of the Screens

How HBO Took on the Streaming Wars

By May 28, 2020No Comments

Key details for HBO Max:
1) Launching today
2) $14.99 monthly cost (*free for current HBO subscribers)
3) 10,000 hours of content
4) 1,800 movies
5) No Roku/Amazon app at launch

Big question #1: How will the (relatively) high price impact new subscriptions beyond the current 34M?

Streaming service price comparison (ad-free):
1) HBO Max – $15
2) Netflix – $13
3) Hulu – $12
4) Amazon Prime Video – $9
5) Disney+ – $7
6) Apple TV+ – $5

Average monthly streaming spend according to Corus:
1) $0 – $10 – 30%
2)
 $25+ – 26%
3)
 $11 – $15 – 21%
4)
 $16 – $20 – 14%
5)
 $21 – $25 – 9%

HBO Max domestic subscriber projections (YoY growth):
1) 2019 – 34M
2) 2020P – 36M (↑ 6%)
3) 2021P – 38M (↑ 6%)
4) 2022P – 41M (↑ 8%)
5) 2023P – 44M (↑ 7%)
6) 2024P – 47M (↑ 7%)
7) 2025P – 50M (↑ 6%)

Big question #2: Will the combination of HBO and the larger WarnerMedia library (CNN, Warner Bros., etc.) drive significant interest as a bundle?

Content that is driving the most excitement according to Morning Consult:
1) 
HBO – 34%
2) 
Warner Bros. – 32%
3) 
Cartoon Network – 28%
4) 
DC Comics – 27%
5) 
Turner Classic Movies – 25%

Video: WarnerMedia CEO John Stankey | Full interview | Code Media 2019

More #1: As HBO Max nears launch, its purpose remains unclear

More #2: HBO Max Is Here to Take On Netflix. Is It Too Late?

More #3: HBO Max Launch: How to Get the Streaming Service (and How You Can’t)

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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