AT&T already explained what HBO Max will look like at launch, but there are new details surrounding its long-term expansion.
The video-streaming service, due out next year, should be filled with a large amount of original programming. Aside from that, HBO Max taps into existing properties such as Friends and everything HBO airs. WarnerMedia's entire portfolio of production and distribution divisions is going to put on display here.
HBO Max will dabble in advertisements, too. AT&T told Reuters that, after HBO Max gets established, it'll explore an ad-supported tier. That ad-supported tier will require a subscription as well, but customers can save some money in exchange for sitting through ads.
Either subscription might be sold at a discount to AT&T's wireless customers. The company hasn't confirmed what it'll do, but there's an expectation that HBO Max would be purchased at a reduced price if you're paying for access to its 4G LTE and upcoming 5G networks. AT&T also wants customer insights from its wireless business, DirecTV, and HBO Max to drive bigger ad fees across all platforms.
Based on its library, analysts suggest HBO Max will cost more than HBO's $14.99 per month. It'll stand far ahead of Disney+ ($6.99) and Apple TV+ ($4.99) at that price. But, while AT&T's trying to attract new customers, it also wants to convert many of HBO's existing 35 million subscribers to the all-inclusive service.
In addition, AT&T says it'll offer live programming on the service in 2021. Cable networks Cartoon Network, CNN, NBA TV, TBS, TNT, and TruTV fall under WarnerMedia's banner. HBO Max will include them in an entirely new tier that can also be paired with its on-demand content. Basically, AT&T wants to attract all types of consumers by selling different subscriptions based on their needs.
Meanwhile, AT&T TV Now still exists. The service supplies live TV on any connected device; therefore, maybe it'll fold into HBO Max in the future. AT&T TV Now starts at $65 per month after its recent price hike.
HBO Max is scheduled to arrive in spring 2020. Initially, it'll be available at no cost to 10 million AT&T customers who are also HBO subscribers.
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