BURBANK, California, usa. (Reuters) – AT&T Inc (T. N), and in May it will launch its HBO and Max streaming services with one of the new “Game of Thrones” series at the current COLLEGE rate of $15 per month, an aggressive move to combat Netflix, Disney, and Apple is the future of TV.
The logo for the WarnerMedia in the new HBO / Max, the service is seen in this handout photo obtained on October 25, 2019 at the latest. WarnerMedia/handout via REUTERS/File Photo
For the price, a lot is expected to be higher, surprised financial analysts and investors attending the WarnerMedia presentation on Tuesday.
HBO-Max is expected to reach 75 million to 90 million and worldwide subscribers will, by 2025, about 50 million of them come from the United States of america. The new service is expected to generate about $ 5 billion in U.S. sales a year by 2025.
The stakes are high for AT&T, who will be saddled with a debt of $134 billion for acquisition of property, to combine the media conglomerate, Time Warner, and the satellite-TV provider DirecTV, the second-largest U.S. wireless-phone company by subscribers.
The success of the HBO / Max is, in many respects, a referendum on the strategy to merge the contents with the means to distribute it.
I don’t agree that is was invented to be high-end, subscription programming, and is playing catch-up in the streaming era is being dominated by Netflix.
In order to remain competitive, AT&T has committed to invest up to $4 billion in additional HBO / Max content, by 2025, executives said, one day after the announcement of lukewarm media’s results for the third quarter of the year.
The investment does not fall far, far short of its main rival Netflix Inc (NFLX.(O), which is intended to make $15 billion in cash on the content of the spending by 2019. However, AT&T, and WarnerMedia managers believe that they have the content, and the ways to get in front of consumers that are lacking in Apple Inc’s (AAPL.(O) the Walt Disney Co. (DIS.And Amazon.com (AMZN.D).
WarnerMedia’s Chief Executive, John Stankey, this month told Reuters that the HBO-Max will be available this spring, and about 10 million in the current AT&T customers in the United States, with a mix of wired and wireless), satellite-TV and a number of COLLEGE and Now customers at no extra cost.
“For the price of $14.99 for HBO / Max and makes for a good balance, not cannibalizing HBO’s existing revenue base, while also addressing the competitive environment for the streaming of tv,” said Sam Hendel, chairman of the And the Eastern ners and a portfolio manager for the firm, which owns about 3.5 million shares of AT&t, “The HBO / Max content to offer, it is very sturdy, and I think that it will be received by the investors and the consumers.”
From Stage 21 at the Warner Brothers Studio lot in Burbank, Calif., executives demonstrated the extent of new original programming, and the depth of the WarnerMedia an extensive library of movies and TV shows. They are included in the collection of the DC comics superhero movie franchises of the last decade, such as “Batman” and the recent box-office hits like “the Joker”, which will be available in the first year of its launch. WarnerMedia insured by the U.S. streaming rights to “South Park.”
To apply to the court for a new audience, WarnerMedia executives said they will introduce you to 88 the original series to be released in 2021, 38 of the universities of applied sciences and 50 to be included in the category called “Max Originals”, which is aimed at a younger audience.
Executives have announced a batch of new shows with high-profile producers and directors, such as “Raised by Wolves” by a “Foreign” filmmaker Ridley Scott about the battle and the raising of human children, and “the College Girls” by comedian, actress and writer Mindy Kaling.
In advance of the presentation, HBO canceled a much-anticipated prequel to the “Game of Thrones”, with Naomi Watts), a source familiar with the matter said, confirming reports in the Hollywood media.
Instead, WarnerMedia executives announced that 10 episodes of a new “Game of Thrones” prequel, called “the House of the Dragon.” The series is set 300 years before the events of the just-concluded series, is based on author George R. R. Martin’s book, “Fire and Blood.”
Even though the Warner Brothers library of popular content, including “The Shining,” and “Scooby-Doo” and the HBO brand is known for clean, high-quality programming, it doesn’t have the same reputation as Disney, Marvel, or Disney properties, which will be included in Disney’s+ the streaming service, which launched Nov. 12.
And one of the newest entries in the streaming wars, HBO, Max, will be competing for household dollars, that has already been assigned to a class.
WarnerMedia hoping that with the HBO, Max, it can continue to serve on the school’s core over-40 crowd, and will expand to include younger viewers, who may wish to stream content, and you don’t want to have to pay for the cable.
“This is not Netflix’s. This is not a Factor. This is a unique, HBO, Max,,” AT&T Chief Executive Randall Stephenson said.
Report by Helen Coster and Lisa Richwine in Burbank, Calif.; Editing by Kenneth Li and Lisa Shumaker