The effects of the COVID-19 pandemic have drawn more people to streaming services. HBO Max started at a convenient time to take advantage of this and brought several movie releases to the platform. While it’s not cheap at $ 14.99 / month, it offers more than one simultaneous stream and supports 4K HDR on many of the best streaming devices. WarnerMedia has already announced plans to launch its cheaper, ad-supported tier this June. Now we may have an idea of how much it will cost.
According to a report by CNBCWarnerMedia plans to charge just $ 9.99 for its ad-supported tier. That would challenge competing streaming services like Disney + and Netflix, the latter of which has a $ 8.99 basic plan that only offers one stream and no HD support. Netflix has a $ 13.99 plan that offers two simultaneous HD streams, though HBO Max already supports 4K and three simultaneous streams right now. If the service maintains these benefits at its new ad-supported tier, it can seriously undercut Netflix.
Apparently, some TV distributors aren’t very happy with the cheaper tier as they appear to be getting a large chunk of the HBO subscription fee. According to CNBCComcast can cost up to $ 9 per $ 15 subscription. AT&T isn’t too concerned about this, and CEO John Stankey seems keen to get more customers with this cheaper subscription:
Regardless of whether a customer buys the ad-supported product or the subscription-only product, it affects our business in the same way.
With June just around the corner, it’s only a matter of time before WarnerMedia announces the full details of its upcoming ad tier for HBO Max. Is one of our readers interested in it?
We can earn a commission on purchases made through our links. Learn more.