Big news #1: Wonder Woman 1984 will appear simultaneously in theatres and HBO MAX on Christmas Day.
Why this matters: The original Wonder Woman grossed $820M, and the sequel was expected to top $1B. This will be included with HBO MAX at no extra charge compared to the $30 Disney+ charged for Mulan.
Big question #1: How will WarnerMedia judge success?
Three primary objectives for Wonder Woman 1984 release strategy:
1) Cover as much of $200M production cost (plus marketing spend) as possible through theatre ticket sales
2) Drive HBO Max conversions and new subscriptions
3) Increase leverage in distribution negotiations with Roku/Amazon Fire TV
Quote from Rich Greenfield – General Partner @ LightShed Partners:
“They’re going to make less money for the greater good of building HBO Max. This is putting the long-term future of the company ahead of profits.”
Big news #2: HBO Max is now available to Amazon Fire TV’s 40M+ HH, and Brandon Katz has the details in a fantastic deep dive.
Big question #2: How is adoption going so far for HBO MAX?
Quick answer: Mixed results.
HBO Max activations (QoQ growth):
1) 2020-Q2 – 4.1M
2) 2020-Q3 – 8.6M (↑ 110%)
HBO Max eligibility (% of total HBO subscribers):
1) Eligible + not activated – 20.1M (53%)
2) Not eligible – 9.3M (24%)
3) Eligible + activated – 8.6M (23%)
4) Total HBO subscribers (US only) – 38.0M
Flashback: Are you an HBO Max subscriber?
Good news: The West Wing reunion appeared to drive significant sign-ups during October.