HBO Max’s Ad-Supported Version to Cost $10 a Month, CNBC Reports
(Bloomberg) -- AT&T Inc.’s new advertising-supported HBO Max service, slated for release in June, will cost $5 less a month than the current ad-free version, CNBC reports.
The long-discussed service will have a price tag of about $10, the business-news outlet said Wednesday, compared with $15 for regular HBO Max, which debuted a year ago.
AT&T Chief Executive Officer John Stankey is counting on the cheaper product to broaden the appeal of HBO Max, which is one of the industry’s pricier streaming services. Netflix Inc.’s most popular offering costs $14 in the U.S., and Walt Disney Co.’s flagship streaming option is just $8.
The company launched HBO Max in May 2020, building on a brand used by its nearly five-decade-old premium cable network. Last quarter, AT&T added 2.7 million U.S. subscribers to HBO and HBO Max combined, for a total of 44.2 million. It aims to have 67 million to 70 million by the end of 2021.
Investors were pleased with the progress when the company reported the numbers last week. Still, its subscriber rolls puts it well behind its biggest rivals in streaming: Netflix and Disney.
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