16 SEP 2020

AT&T PLANS LOWER-PRICED VERSION OF HBO MAX WITH ADVERTISING

The company declined to disclose the price of the new ad-supported HBO Max or whether it will have a different name, but it said it will cost less than the current price of HBO Max, which is $14.99 a month.

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AT&T Inc. will debut an ad-supported version of HBO Max next spring at a lower price, Bloomberg informed. The new version of HBO Max will have a “light ad load,” said John Stankey, Chief Executive Officer at AT&T, during an interview. Although he declined to disclose the price of the new ad-supported HBO Max or whether it will have a different name, but he said it will cost less than the current price of HBO Max, which is $14.99 a month.

Nevertheless, some shows on the service will remain advertising free and only available to subscribers who pay the full price. “There is some content where you want the experience to be commercial free,”  Stankey commented.

The addition of commercials next year will mark another major change for HBO, a premium cable network that’s being asked to serve as AT&T’s online workhorse in streaming. It will also draw a clear distinction from its longtime rival, Netflix, which has steadfastly refused to carry advertising. HBO Max will join streaming competitors like Hulu and NBC’s Peacock that offer consumers a lower price or free access if they’re willing to watch commercials.

“Virtually any fast-growing company that’s out there today, many of them have free services that are supported by data and advertising. Having an advertising option is going to be important to making sure the broadest cross section of content is available to people moving forward,”  Stankey assured.

Having an advertising option is going to be important to making sure the broadest cross section of content is available to people moving forward” John Stankey Chief Executive Officer at AT&T