AT&T May Have Just Saved HBO Max
The early interest in HBO Max was disappointing to say the least. AT&T (NYSE: T) disclosed in its third-quarter report that only 8.6 million people had activated the streaming service since its launch in May. Given as many as 29 million consumers might be able to get HBO Max at no additional cost, that's not an encouraging start.
The company announced a decision Thursday afternoon, however, that could change everything for HBO Max. At least in 2021, AT&T's studio arm Warner Brothers will offer its new movies through HBO Max at the exact same time they're playing at conventional movie theaters.
On the surface it may seem an either/or matter that leads to little net change. That is to say, AT&T's Warner will split box office receipts with movie houses, or it will collect subscription revenue via HBO Max. It's unlikely to do both with most consumers, though. Given the demographic data of the average streaming customer, though -- and the same data for the few consumers that are already HBO Max customers -- AT&T arguably has more to gain with this direct-to-consumer path.
Source Fool.com
