Streaming service wars news and trends 4 4

[Bosco685]

 

[Bosco685]

HBO Max has added 8.6 million US subscribers

Quote

HBO Max -- WarnerMedia's answer to Netflix, Disney+ and the like -- is catching on quickly.

 

The company doubled the number of HBO Max subscribers last quarter and now has 38 million HBO and HBO Max customers. That's enough to surpass HBO's year-end target.

AT&T, which owns CNN parent company WarnerMedia and the fledgling streaming platform, said Thursday that the "growth and scale of HBO Max continues to show strong momentum," after adding nearly 4.5 million new customers over the past three months to reach a total of 8.6 million activations since it launched in May.

Still, most of HBO Max customers aren't completely new. The number of total HBO and HBO Max subscribers in the United States grew by fewer than 2 million in the past quarter. That means the bulk of its new customers are HBO customers changing to HBO Max -- which was already available to them. Between HBO and HBO Max, the two services combined have a total 57 million subscribers globally.

With its reach limited to the United States, the five-month old platform trails its competitors in terms of subscription numbers.

Disney+ has about 60 million members and Netflix (NFLX) has nearly 195.2 million subscribers. HBO Max plans to launch an ad-supported service next year and likely expand globally. It's also still not available on Roku (ROKU) and Amazon (AMZN) Fire TV devices — two of the most popular devices that consumers use to watch streaming services.

Ultimately, AT&T (T) aims for HBO Max to have 50 million US subscribers by 2025.

In its third-quarter earnings released Thursday, AT&T's revenue of $42.3 billion in revenue came in slightly above analysts' expectations. The company added 645,000 new phone subscribers, but had a net loss of 590,000 subscribers to its premium TV services, like DirecTV.
"We delivered a solid quarter with good subscriber momentum in our market focus areas of connectivity and software-based entertainment," said CEO John Stankey.

 

[Bosco685]

Another view on this is the number of subscribers counted that have not activated their HBO Max services yet.

HBO Max has 28.7 million subscribers, but not all of them are actually watching yet

Quote

HBO Max, the new premium streaming channel from AT&T’s Warner Media, said in its earnings report on Thursday that 8.6 million customers have activated their subscriptions to the service in the third quarter, bringing the total number of HBO and HBO Max subscribers in the US to 38 million — ahead of the company’s target of 37 million for the end of 2020 — and 57 million globally.

 

AT&T counts “activations” as well as subscribers, as many customers who already pay for HBO have access to HBO Max as part of their package, but haven’t yet activated that subscription and started watching. According to the earnings report, 28.7 million customers were eligible to get HBO Max at the end of the third quarter, but activations of HBO Max to date number 12.7 million, meaning about half of the existing HBO subscribers who could get HBO Max for free haven’t yet watched Max content (and may not be aware it’s available to them). And HBO Max still isn’t on major platforms like Roku, which likely has had an impact on subscriber growth.

 

The rest of AT&T’s third quarter results were mixed. Its cable division, which includes DirecTV, lost 627,000 customers in the quarter. but broadband subscribers were up by 158,000, including more than 100,000 subscribers on one of its Keep Americans Connected plans. Its wireless division saw an increase of 645,000 postpaid phone subscribers.

 

AT&T saw a profit of $2.8 billion in the third quarter, down from $3.7 billion a year ago. Revenue was also lower, coming in at $42.3 billion compared to $44.6 billion in the year-ago quarter. Its Warner Bros. division saw revenue drop 28 percent to $2.5 billion, taking a hit from closed theaters and movie releases delayed until next year. HBO’s third quarter revenue was down 2.1 percent to $1.8 billion.

 

[Bosco685]

Streaming was part of the future — now it’s the only future

Quote

Over the last year, if an entertainment conglomerate hasn’t announced a shift to focus on streaming, does it really count as an entertainment conglomerate?

 

With the end of the year in sight and the entertainment industry crowded with streaming options, legacy companies are making big bets on their new services, using public executive shake-ups and declarations of digital-first importance to make their point heard. Streaming isn’t just a part of their businesses; it’s their future.

 

Over the last several months, Disney, NBCUniversal, WarnerMedia, and ViacomCBS have restructured their teams to make streaming a primary focus. Longtime executives have been fired, others have stepped down (aka fired), and departments merged in an effort to compete with the biggest competition in the room. The lingering question is will it work for every player in the game? How much of it is too little too late?

 

(Disclosure: Comcast, which owns NBCUniversal, is also an investor in Vox Media, The Verge’s parent company. The Verge is also currently producing a series with Netflix.)

 

That doesn’t mean four of the biggest conglomerates in the world aren’t making big moves to try to compete. Let’s break it down company by company.

 

DISNEY

Former Time Warner CEO Jeff Bewkes believes that of all the new entrants, only Disney will succeed. Just before the one-year anniversary of Disney Plus’ launch, CEO Bob Chapek announced a monstrous reorganization for the company’s streaming division — one that affects nearly every part of the company. Various divisions have been consolidated into one main section — Media and Entertainment — with one of Chapek’s right-hand men from his time in the parks division, Kareem Daniel, overseeing the newly renamed arm. As executives shuffle around, Chapek and the company also issued a public release confirming Disney’s future priorities are streaming-first.

 

WARNERMEDIA

Although WarnerMedia and AT&T executives are changing the company to build out its streaming initiatives, HBO Max isn’t growing as fast as some industry critics may have hoped. AT&T reported that HBO Max has seen just over 8 million activations since it launched at the end of May, with 28.7 million customers eligible for the streaming service by the end of the company’s most recent quarter. Stankey has downplayed those concerns, saying they’re mostly on track but would have likely seen a better launch had the pandemic not affected rollout of original series and specials. But one thing’s for sure: HBO Max isn’t seeing the kind of success that Disney Plus did initially.

 

The future of WarnerMedia in both Kilar and Stankey’s eyes is HBO Max. The next hurdle is figuring out how to get people to sign up and actively use the service. Kilar and Stankey have a few ideas, including rolling out an ad-supported cheaper tier next year to try to convince people who don’t want to spend $15 a month.

 

NBCUniversal

Like Disney and WarnerMedia, NBCUniversal hasn’t tried to shy away from Peacock being a top priority. Unlike Disney Plus, however, Peacock also wants to attract top-paying advertiser dollars, with NBCUniversal developing new ad tech to appeal to the biggest companies. The streamer, which launched nationwide in July, last reported having more than 15 million subscribers.

 

The throughline between all of these restructurings is consolidation and tightening, especially in areas that continue to wallow. In September, The Wall Street Journal reported that Shell was looking into further reorganizing that would continue to focus on streaming and less on linear or cable TV networks that people weren’t tuning into. The Journal reported that Shell is “centralizing decision-making — from which shows get made to which networks those shows should run on — and dramatically slimming down the cable unit in the process.” Sound familiar by now?

 

VIACOMCBS

Similar to NBCUniversal, ViacomCBS is reportedly considering shutting down entire networks, according to CNBC. Although nothing is imminent, CNBC’s report adds, a cursory glance at the company’s designated pillars for its streaming platforms shows where the company is investing (BET, Nickelodeon, Paramount, MTV) and where the company likely isn’t (VH1, PopTV, Logo). Strategically, ViacomCBS is doing the same thing Disney did — bet on core properties that will drive subscribers to streaming platforms, and consolidate elsewhere to cut costs.

 

“If you are going to differentiate yourself, every incremental dollar you can put into the development of that content becomes important,” Greg Portell, head of global consumer industries at consultancy firm Kearney, said. “That means a lot of these companies that have gotten bloated over the years, and they really need to stream that down.”

 

[Bosco685]

Quote

The WarnerMedia streamer launched in May without distribution on Roku or Amazon devices, but the deal with Amazon increases its availability significantly.

Warner Media has reached a deal to distribute six-month-old streaming service HBO Max on Amazon Fire TV devices.

 

The deal could help HBO Max reach millions of potential subscribers as the fledging service looks to grow its audience.

 

Amazon is the second most-used streaming platform in the U.S. behind Roku, with tens of millions of users. The deal with Amazon means that Roku is the last major platform without a deal to carry HBO Max.

 

At the center of WarnerMedia's distribution negotiations is how the platforms classify the service. The previously launched HBO Go and HBO Now apps were treated as channels and sold through Amazon's a la cart subscription offering. But WarnerMedia wants HBO Max to be treated more like standalone services Netflix or Disney+. Under the new deal with Amazon, existing HBO subscribers who purchased the subscription through Amazon Channels will have access to HBO Max at no additional cost.

 

HBO Max's absence on Roku and Amazon devices has only complicated its brand positioning. When the service launched, it joined a lineup of WarnerMedia apps that included HBO Go (for cable subscribers) and HBO Now (for online subscribers). Though WarnerMedia upgraded most of those subscribers to HBO Max immediately after the service's launch, Roku and Amazon users were stuck with the original offerings, which only include HBO programming and don't feature the expanded library or HBO Max originals.

 

In a move to streamline its app branding (and to pressure Roku and Amazon to strike a deal for HBO Max), WarnerMedia announced this summer that it would sunset HBO Go and rebrand HBO Now as, simply, HBO. The changes didn't affect "the majority of HBO Go customers," per a WarnerMedia representative, because they had already been upgraded to HBO Max. But Go and Now customers accessing the apps via Roku or Amazon would see the changes.

 

[Bosco685]

Quote

Days after Disney CEO Bob Chapek praised Hulu’s live TV offering during the company’s quarterly earnings call, the company notified customers of a significant price increase.

 

As of December 18, the package including more than five dozen networks will cost $64.99 a month for both current and new subscribers, up 18% from the previous rate of $54.99.

 

The hike was relayed to subscribers by the company, which did not offer any additional comment on the move. The move brings Hulu’s live bundle, in line with rival services like YouTube TV, which also goes for $64.99.

 

Disney reported that Hulu had 4.1 million live subscribers as of September 30, to go along with 32.5 million customers paying for Hulu’s on-demand service. Unlike YouTube or other internet-delivered bundles, Hulu’s pricing includes access to all of its on-demand programming.

 

[Bosco685]

Cool way to fill the pipeline by taking people behind the scenes.

 

[Bosco685]

About time.

 

[media_junkie]

5 hours ago, Bosco685 said:

About time.

 

I hope it is soon!

[Bosco685]

9 minutes ago, media_junkie said:

I hope it is soon!

This will most probably line this up before the Wonder Woman 1984 release. It would be crazy not to have it done before then.

[Fan Boy]

The burning 🔥 question in related with HBO Max subscribing to watch. For to see Wonder Woman 1984 movie ... can Canadians with HMO Max international subscriptions be able to access to watch it? I understand that it is meant for American version but I have to wonder  about the Canadian version.

I have HBO Max in my cable subscription, thus my question above. 

[▫️]

2 hours ago, Fan Boy said:

The burning 🔥 question in related with HBO Max subscribing to watch. For to see Wonder Woman 1984 movie ... can Canadians with HMO Max international subscriptions be able to access to watch it? I understand that it is meant for American version but I have to wonder  about the Canadian version.

I have HBO Max in my cable subscription, thus my question above. 

I wonder if it’s like Netflix in regard to how I use my VPN to change my Netflix movie selections by switching to different countries. Of course this is only for the apps on my iPad. 

[Bosco685]

An article from earlier in the year that summarizes why HBO Max is taking so long with Canada and Europe distribution. Previous agreements appear to be getting in the way.

Why HBO Max International Releases Will Be Complicated Until 2024

Quote

HBO Max's US release is occurring during the coronavirus outbreak, when millions of Americans are under a stay at home order, helping to boost streaming numbers. Despite the buildup, however, HBO Max will not be available to subscribers outside of the US for some time.

 

HBO Max won't hit many international screens until 2021, but WarnerMedia, owner of HBO, has renewed its programming deals with two media giants outside of the United States, providing insight into when these markets will have access to the service. Last year, WarnerMedia renewed its programming deal with Sky, the UK company, for five more years. HBO and Sky partnered to bring audiences the smash-hit Chernobyl. WarnerMedia also signed a deal with Bell Media, the company that owns the Canadian streaming service Crave, to bring HBO Max to Canadian audiences in 2020 (HBO content is currently available on Crave for an additional fee). WarnerMedia has a few additional deals in outside markets, such as Latin America, and likely the company will be prioritizing some markets over others.

 

Each of WarnerMedia's deals comes with complications, namely in the level of content HBO Max will provide to non-US customers. Thanks to deals like these, some international audiences won't see HBO Max content for a few years, but some might not see any at all.

 

HBO Max & Crave's Programming Deal

Canadian customers of Bell Media's Crave will be able to access HBO Max content; however, it will still be difficult for Canadians to get HBO Max. Canadians will not have access to the new streaming platform; rather, the HBO Max original content will be made available through the paid HBO add-on. Currently, subscribers pay $9.99/month for Crave with the option to add HBO + Movies for an additional $9.99/month. That overall price is far more expensive than the average monthly cost of any basic streaming platform subscription currently on the market. Even for that hefty price, Canadians won't even have full access to HBO Max's entire library of content. Crave customers will receive the entirety of HBO and HBO Max's content exclusively produced by HBO or HBO Max itself. Any content produced by outside partners, like Friends, will not be included in this deal.

 

HBO Max & Sky's Programming Deal

Sky is a British telecommunications company owned by Comcast. Just like Comcast's presence in the US, Sky provides millions of UK residents with cable and internet. So HBO teaming up with the UK company is a logical partnership. It's because of that partnership that audiences around the world got Chernobyl, which is one of HBO's biggest successes to date; however, that partnership is also why UK audiences won't be seeing HBO Max anytime in the future.

 

The US market has been WarnerMedia’s top priority for the first rollout of HBO Max’s launch. After that, they are targeting markets in Latin America and Europe that currently offer HBO as a standalone network. Thanks to the newly renewed deal, that doesn’t include the UK. Within that region, Sky has exclusive rights to HBO content. That deal will stand in place through 2024. As HBO’s partnership with Sky has brought the network multiple successful shows, that partnership is unlikely to end anytime soon. That means it will continue to lessen the chance that Sky subscribers in the UK will ever get the opportunity to access HBO Max directly. It’s wise to bet on a partnership that’s already been deemed lucrative, but that might end up impacting the success of HBO Max in the long run.

 

HBO Max's Release In Other International Markets

While HBO Max might never see the light of day in the UK, other Sky customers will get access to the streaming platform when it launches. HBO operates independently outside of Sky in European countries like Scandinavia, Spain and Portugal. If some Sky customers are able to access HBO Max while UK customers are left in the cold, it might leave open avenues for those subscribers in the UK to access the content in less-than legal ways.

 

Outside of the US, WarnerMedia has their eye on Latin America for their next big launch. WarnerMedia now has ownership of HBO, HBO Max, Cinemax and HBO Go in the vast majority of Spanish-speaking Latin American and Caribbean countries. This allows WarnerMedia to bring their own localized version of HBO Max to this region, but they won't be getting it until 2021.

 

[Bosco685]

Quote

WarnerMedia just announced massive plans for the future of HBO Max, revealing every 2021 film from Warner Bros. Pictures is set to debut on the streaming platform the same time they'll premiere in theaters; this includes the highly anticipated James Gunn DC Comics film The Suicide Squad. The streamer also has plans for future shows including Gotham Central and Green Lantern Corps, but it sounds like those plans will be expanding globally in the near future. A recent interview with Casey Bloys, the Chief Content Officer for HBO who recently expanded his reach to HBO Max, indicates that the new streamer will take a page from the Netflix playbook.

 

HBO Max has already taken on DC Universe shows like Doom Patrol, Harley Quinn, and Titans. They also announced new plans for The Suicide Squad spinoff Peacemaker, The Batman spinoff Gotham Central, and Green Lantern Corps, but there will be more in the works.

 

“We’re also going to work to see DC content in other countries outside of the U.S.,” explained Bloys at the Web Summit. He added, "One of the big themes of bringing HBO Max together was breaking down the silos between HBO, Warner Bros and TBS and TNT. I’d say one other silo was international."

 

This could be an attempt to copy Netflix's strategy as a major international powerhouse, as they have also had success creating content for specific regions. The sci-fi series Dark, produced in Germany, has earned critical acclaim and crossover appeal in the United States. Spanish shows such as Elite and Money Heist have also garnered similar praise. Netflix has also catered to different regions with reality TV offerings for shows like Nailed It, The Circle, Crazy Delicious, and more.

 

With HBO Max digging into DC Comics' deep library of iconic characters for international audiences, there's a lot more potential to take advantage of their strong fanbase. Using its diverse slate of heroes to cater to specific regions could prove fruitful in expanding the service's popularity.

“One of the things that we’re going to do with Max is that all of our international productions will eventually live on Max and we’re going to do a much better job of coordinating between all of the folks programming in Europe, Latin America and Asia so if there’s anything that we’re developing that has real cross-border appeal, we’ll be able to highlight that,” said Bloys.

 

[Buzzetta]

Like I've been saying, I do not see people returning to the theater.  Some people need that theater experience.  Others just wanna watch the movie. 

Now they can do so in the comfort of their own home.  

Eventually I see movie theaters just dying out except for novelty art house type theaters.  After the studios kill the theaters and the middle man they will start charging to see individual movies through a streaming rental platform direct from the studio.  Every studio has an app.  Every studio offers a PPV/rental platform directly for their movies. 

[Buzzetta]

And here comes the "deal" - @Bosco685

 

https://www.thewrap.com/amc-hbo-max-deal-warner-bros-talks/

Edited December 4, 2020 by Buzzetta

[Bosco685]

5 hours ago, Buzzetta said:

And here comes the "deal" - @Bosco685

 

https://www.thewrap.com/amc-hbo-max-deal-warner-bros-talks/

Interesting. But it also notes the reality of the situation.

Quote

Insiders at Warner Bros. told TheWrap that a major factor for the move was uncertainty over the pace at which theaters will reopen next year as COVID-19 vaccination efforts get underway. Health experts like Dr. Anthony Fauci have estimated that the U.S. could reach herd immunity by mid-summer, but many areas of the country are still working to build the infrastructure needed to distribute the vaccine, including deep freeze storage units. It is also unclear how quickly theaters will be given clearance by state officials to reopen and how long those theaters will have to maintain social distancing and audience capacity limits.

Add to this moviegoers not being comfortable with large crowd venues for a while. Ugly situation for theaters.

[Bosco685]

Quote

For more than a year now, there has been speculation that Disney might one day fold Hulu into its Disney+ streaming service, and sure enough, Collider is hearing that multiple Hulu executives have been leaving or let go from the streaming service in anticipation of the move, which makes a lot of sense from a business perspective.

 

The working theory is that there's strength in numbers, and The Walt Disney Company would look much more appealing to Wall Street investors if it could boast of having 110 million subscribers on a single service, rather than 73.7 million on Disney+ and 36.6 million on Hulu. It simply makes more sense to combine the two streaming services into one single juggernaut that appeals to both families and adults.

 

After all, Hollywood is in the midst of the Streaming Wars, and these days, streaming services have to be all things to all people. Netflix is way out in front given the sizable head start it has had on most of its competitors, but that doesn't mean its lead is insurmountable. If any streamer can catch Netflix, it's Disney+ thanks to the massive IP it has at its disposal, from Marvel to Star Wars to Pixar.

 

But there are still large swaths of adults who don't have kids and aren't interested in those blockbuster brands. Hulu has a lot of great original programming, especially since the FX on Hulu experiment began, and Disney is said to be eager to bring those subscribers under one roof.

 

Questions remain as to what Disney+ would look like in that scenario, but it wouldn't be too difficult to put parental controls on mature content, or require some kind of passcode to access certain films and TV shows. While some naysayers suggest Disney would never do anything to jeopardize its family-friendly brand, others argue that consumers have become savvy enough to navigate those choppy waters.

 

In fact, when the news broke that the Molyneux sisters had been tapped to write Deadpool 3, many wrongly assumed the sequel would be PG-13 now that it was under the Disney umbrella. However, Deadline reporter Justin Kroll dispelled that notion, tweeting that Ryan Reynolds' comic book sequel is expected to carry a R-rating, just like the first two installments. It's that kind of move that indicates Disney might be willing to budge on its stance.

 

Disney is also sitting on a treasure trove of library titles acquired in the Fox deal, so if people want to watch Die Hard, doesn't it make more sense to make that film available in an adults-only section of Disney+ rather than a sister-but-still-separate streaming service?

 

Of course, complicating matters is the fact that Hulu offers a Live component that allows ad-ons, so not only are people watching the three major networks via Hulu, but they're also accessing HBO, Showtime and Starz through the streaming service. I'm sure we'll be hearing more about this in the weeks and months to come -- and possibly as Disney's upcoming Investor Day on Dec. 10. Until then, click here to read about WB's decision to release its entire 2021 slate simultaneously on HBO Max and in theaters.

 

[Cozmo-One]

That would be convenient for me since those are the two streaming services I'm currently paying for (well Amazon Prime video, but I look at that as more of a bonus ).  HBOmax is also free at the moment, but probably wouldn't pay for it if was required.

PlutoTV has a surprisingly large amount of free programing as well. Love BuzzrTV

[Bosco685]

1 PM EST today