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The video service will cost $ 15 a month, on the high end of what its streaming rivals charge, but a promotion allows customers to get it $ 12 monthly for the first year. AT&T executive Jeff McElfresh said last month that the company was looking for several ways to make HBO Max more palatable.
It is not surprising. According to a survey of approximately 1,000 American consumers by Corus on behalf of Bloomberg, most Americans spend $ 15 or less across your broadcast budget. And at least for now, HBO Max is not the priority.
The HBO platform was considered less essential than Netflix, Disney +, Hulu, and Amazon Prime Video, according to respondents. They put him in the same range as CBS All Access, a $ 6-a monthly service that has been a modest success for ViacomCBS Inc. but not the great success that HBO Max aspires to be.
Continuous spending
Most American consumers spend $ 15 a month or less streaming
Sources: Corus, Bloomberg
The most popular level on Netflix is $ 13 one month. And Disney +, which has quickly accumulated more than 50 million users since its launch last year, only costs $ 7.
Broadcasting services in general have benefited from the coronavirus blocks that swept the US. USA And much of the world, with Netflix adding the staggering 15.8 million subscribers last quarter. But the economic downturn and widespread unemployment may make consumers less eager to apply for new services, especially as the crisis progresses.
AT&T is Launching of HBO Max on May 27, and the company has been reviewing a series of promotions “to find the right value proposition and the right opportunity for market expansion,” McElfresh said last month.
Quibi, a short-form video application introduced last month, went through the same process. It initially offered a 90-day free trial to new customers.
HBO Max has some advantages. In particular, more than 40 million people in the US. USA They already pay for HBO, be it the cable network or the current online version. And now they will have the opportunity to pay a similar price for a service with much more content, including classic movies, replays like “Friends” and new originals.
AT&T can also help cable cutters, who are getting rid of cable television and investing that money in streaming services. Even customers on a limited budget may find they have an extra $ 15 A month to spend.
– With the assistance of Scott Moritz
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