WarnerMedia's new streaming service HBO Max is already leading the pack — in terms of price.
Though viewers will need to shell out more for the service than its competitors, the price might actually be a bargain. HBO customers already pay $14.99 a month. With HBO Max, people will pay the same amount but get more bespoke programming and 10,000 hours of previously released movies and television shows.
WarnerMedia held an investor day for its new streaming service on Tuesday, unveiling more details about the highly anticipated platform. HBO Max will be half focused on younger millennial programming, with the other half focused on entertainment for children and adults.
The service, slated to launch in May 2020, will be the home for exclusive shows based on top properties including the Game of Thrones prequel House of Targaryen and a Gossip Girl" sequel. It will also have a rebooted version of *The Boondocks and a musical series set in the Grease 1950s universe, as well as *Sesame Street" and spin-offs from the franchise.
WarnerMedia also has a goal of HBO Max reaching 50 million users by 2025. It already has a head start, given that HBO already has 37 million domestic subscribers and standalone HBO Now customers will get HBO Max for the same price.
While the service does cost three times the price of the upcoming Apple TV+, which is set to launch on November 1 at $4.99, HBO Max will come with a large library of shows and movies. Customers will also be able to find TV series including South Park, Friends, The Fresh Prince of Bel-Air, and The Big Bang Theory. DC movies including Joker will be available at launch, among other titles.
In order to run some of this content exclusively, WarnerMedia has pulled some of the high-profile content from competitors like Netflix and Hulu. That should give HBO Max a competitive boost, considering that many of these shows are proven hits and household names.
In addition, HBO Max gets benefits from the strong HBO brand. Many consumers equate HBO with quality and award-winning programming. WarnerMedia plans to double its annual spend on HBO content to $2 billion in 2020. It's still a fraction of the $15 billion Netflix is set to spend on shows and movies this year. Even with the smaller budget, HBO dominated at the Emmys this year, taking home 34 top honors. Netflix nabbed 27, while Amazon had 15.
Still, it's not all smooth sailing ahead for HBO Max. The company could potentially dilute the brand name if it expands to shows and movies that aren't up to the same standard loyal HBO audiences are used to.
It's also the late entrant to a marketplace that will already have Apple and Disney's new streaming platforms, as well as Netflix, Hulu, and the myriad of hyperspecific streaming services that cater to niche tastes. While the $15 price point isn't unreasonable, viewers may be checking their wallets by next May to see if they have enough left in the budget to add HBO Max.
Markets jumped on the Federal Reserve's announcement it would speed up its tapering timeline and institute three rate hikes in 2022 — but that was before the COVID-19 omicron variant seemed to be a threat. This announcement also comes as it took the central bank a number of weeks to recognize that inflation does not seem to be transitory as consumers feel price pressure across the board. Bill Adams, senior economist at PNC, joins Cheddar News' Closing Bell to discuss the Fed's moves, how the ongoing pandemic could continue to impact the economy, the Fed's dual mandate, and more.
Delta Air Lines CFO Dan Janki joined Cheddar's Kristen Scholer to talk about the airline's 2022 outlook on its Capital Markets Day as the travel industry recovers from pandemic disruptions. The airline projects a return to profitability next year despite the emergence of the omicron variant during the peak holiday season. Janki said that there had been no impact on domestic travel as of yet, but the company is remaining vigilant for any change. He did note that there had been some international fallout as countries implemented travel restrictions.
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Cheddar is looking back at the 12 biggest buzzwords of the year leading up to Christmas. The seventh term in the countdown is Transitory. Definition: (adjective) of brief gratification, not permanent.
More businesses are requiring workers to return to the office, but there is concern that many employees in the middle class, especially women and people of color, need remote work options for reasons including childcare and financial security. Joan Williams, director of the Center for WorkLife Law at the University of California, joined Cheddar to discuss why office mandates could be detrimental to the middle class. She noted that while companies claim a return to offices would help foster more collaboration and efficiency, reports show that they are successfully able to do their jobs from home.
Fresh Vine Wine, a maker of low-carb, low-calorie, and gluten-free wines, made its public debut on the NYSE. Celeb do-owners Nina Dobrev and Julianne Hough, alongside CEO Janelle Anderson, joined Cheddar's Azia Celestino to talk about their partnership, the decision to launch an IPO, and tout the healthy lifestyle market their product is going for.
