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.

Share:
More In Business
Meta to Block Ad-Targeting Based on Race, Religion
Meta, the parent company of Facebook, turned heads on Tuesday when it announced it will block some ad-targeting, specifically those of a political and religious nature. This is one of the most direct moves the company has made in order to minimize ad-targeting by advertisers on its platforms. Hastie Afkhami, Head of Digital at S-3 Group, joins Cheddar News to discuss the impact of this move.
Subscription Wine Provider Winc Toasts Itself on the Public Market
Wine subscription service Winc is officially a publicly-traded company after debuting on the New York Stock Exchange. CEO Geoff McFarlane and President Brian Smith joined Cheddar to talk about the decision behind the public offering and noted that its service goes beyond just subscriptions. "We're an omnichannel platform, so the subscription is a great way for us to really generate a ton of data from our customers, launch new products, and market our portfolio," McFarlane said. "But ultimately when we find great products that our customers really love, we want them to be everywhere." He went on to point to distribution partners like Whole Foods, Walmart, and Trader Joe's.
Customer Service Platform Weave Communication CEO on NYSE Debut
Roy Banks, CEO of Weave Communication, a cloud-based software company for small businesses, joined Cheddar to talk about the company's New York Stock Exchange debut. Banks broke down just how his company helps small businesses manage relationships with their customer base and also laid out how the funds raised will be used to grow the business and its short and long term goals.
Sotheby's to Accept Crypto During Live Auction
Sotheby's is getting into the crypto game. The auction house announced it will now be accepting bids in increments of ETH, marking the first time that an auction will field live bids in crypto. This announcement comes just a week ahead of Sotheby's contemporary art auction 'The Now Evening Auction' for two works by Banksy: Trolley Hunters and Love is in the Air. Alex Branczik, Sotheby's Chairman for Modern & Contemporary Art joined Cheddar's Opening Bell to discuss what went into this move.
Load More