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HBO Max could be priced even lower than we thought, says analyst

HBO Max could be priced even lower than we thought, says analyst
[Photo: Teddy Rawpixel/rawpixel]

As AT&T feels the pressure from a wave of new streaming TV competitors, one analyst believes the company’s HBO Max service will cost less than previous reports have suggested. UBS analyst John Hodulik expects HBO Max to cost $12 per month, or $8 per month with ads, when it launches next year, FierceVideo reports.

In June, sources told the Wall Street Journal that HBO Max could launch for $16 to $17 per month, but Dylan Byers of NBC News reported last month that AT&T was eying a lower price of $15 per month, equal to the cost of streaming HBO alone. With Disney+ and Apple TV+ launching in November for $6 per month and $5 per month, respectively, and NBC planning to give away its Peacock streaming service to pay-TV customers next year, AT&T may be getting skittish about charging drastically more than its peers. (Turns out there’s an upside to all that so-called “subscription fatigue.”)

The problem, as Hodulik notes, is that AT&T could end up undercutting the rate that pay TV providers typically charge for HBO. It’s unclear whether those providers would get to slash their own rates in response, but if so, HBO’s existing cable and satellite revenue stream would take a big hit. That might be a price AT&T’s willing to pay to scale up its future streaming business.

We’ve reached out to AT&T for comment.

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