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WarnerMedia, the parent company of Warner Bros., recently announced that its direct-to-consumer streaming service, HBO Max, will now offer an ad-supported version for $9.99 per month. This move is touted as an attempt to better compete with other streaming services in the increasingly crowded market.
Rather than the current subscription fees of $14.99 per month, the new pricing includes a cheaper option for consumers while still offering the same content currently available in the streaming service. Advertisements will run within the content, similar to what viewers see with cable, and ads for HBO’s other services will be included.
It is part of a strategy to boost subscriber numbers to compete more effectively with services like Netflix, Hulu, and Amazon Prime. WarnerMedia hopes that the lower cost will entice consumers to sign up for the service and even remain as subscribers when the ad-free version is offered in 2021.
The move follows pressure from investors who questioned the original high-price tag for HBO Max. Despite endorsements from media and technology giants, the service has struggled to gain the same traction that competitors have claimed. WarnerMedia executives believe this move will help the service become more competitive in the streaming wars.
The news comes as media companies continue to jockey for market share in the streaming wars. It’s an intensely competitive landscape, with giants like Disney, Netflix, and Apple all vying for content offerings and consumer viewership. WarnerMedia needs to distinguish itself in order to remain relevant, and this move is seen as a way to do that.