In October we learned that AT&T plans on spending $2 billion on content for HBO MAX in 2020. After that, AT&T plans to spend $1 billion in 2021 and 2022. AT&T is hoping that by 2025 it will be able to make a profit with the new streaming service, according to Variety.
AT&T hopes that by 2025 HBO MAX will have 75 million to 90 million subscribers. AT&T hopes 50 million of these subscribers will be from the United States. As of 2017, HBO had 134 million US subscribers, with 54 million of them in the United States and the rest from around the world. It seems that AT&T is hoping it can move the vast majority of subscribers over to HBO MAX.
So why does AT&T want customers to switch to HBO MAX? In short, this would cut out the middle man for most HBO subscribers. AT&T would no longer have to give cable companies a cut of the HBO subscription monies.
The question now is will AT&T hit the goal of 75 to 90 million subscribers by 2025? It would seem that AT&T has a base to build toward that goal, but will AT&T be able to keep its price attractive? With Disney+, Hulu, Apple TV+, and others selling for under $10 each, AT&T’s starting price of $14.99 is more than double that of some of its competitors.
What do you think of AT&T’s plans? Will it be able to turn a profit just five years after launch? Leave us a comment and let us know what you think.
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