WarnerMedia's new streaming service, HBO Max, launched on Wednesday, entering an already crowded market dominated by Netflix, Disney Plus, and Amazon Prime Video. The platform, which costs $15 per month, offers 10,000 hours of content, including exclusive shows like the sitcom Friends.
The launch comes amid the coronavirus pandemic, which has kept millions at home. However, experts warn that the high subscription fee may deter customers facing financial strain. Research director Steve Nason of Parks Associates noted that price is a primary concern for consumers.
HBO Max is priced the same as the existing HBO Now service, but competitors like Netflix and Hulu offer cheaper plans. Disney Plus and Quibi launched with lower prices and discounts. A New York Times study found that one in five HBO Now subscribers planned to cancel due to cost.
WarnerMedia, owned by AT&T, aims to attract 50 million subscribers by 2025 and generate billions in annual profits. The company spent $85 billion acquiring Time Warner in 2018 and plans to invest over $4.5 billion in HBO Max.
The streaming landscape is becoming increasingly fragmented, with new services from Disney, NBCUniversal, ViacomCBS, and Fox. Quibi, a short-video service, has struggled since its launch, with chairman Jeffrey Katzenberg blaming the pandemic for low interest.
