As HBO Max approaches the one year anniversary of its launch, the burgeoning WarnerMedia streaming service is already prepping a move to boost its subscriber base by offering a lower price tier that it hopes will bring in users who initially balked at HBO Max’s cost of $15 a month. Naturally, this new tier would be supported by advertising, which HBO Max is trying to employ in a less obtrusive way than its competitors. However, it’s interesting to note that while streaming services like Hulu and Peacock started out with ads then later offered an ad-free experience, HBO Max is going in reverse after realizing that its current price was perhaps a bit too high, especially in the current economic climate. Via Deadline:
“It turns out that most people on this planet are not wealthy,” [WarnerMedia CEO Jason] Kilar said during a virtual appearance at Morgan Stanley’s Technology, Media & Telecom conference. “If we can wake up and use price and be able to kind of invent and do things elegantly through advertising to reduce the price of the service, I think that’s a fantastic thing for fans.”
The ad-based price tier will reportedly launch later this year after HBO Max “works out the kinks.” However, despite the blatant appeal to reel in more users, the streaming service still maintains that it is two years ahead of schedule thanks to releasing Wonder Woman 1984 on the platform on Christmas Day 2020. As reported back in January, the film’s simultaneous HBO Max and theatrical release nearly doubled subscribers, and the streaming service is hoping to see that trend continue as more brand new blockbusters hit the platform like Godzilla Vs. Kong later this month.