HBO Max Will Add Cheaper Ad-Supported Tier

HBO Max Will Add Cheaper Ad-Supported Tier

AT&T’s Warner Media has announced that it will be offering an ad-supported HBO Max subscription option at $9.99 per month. The new plan will debut in June, nearly a year after HBO Max first launched with its $14.99 per month model.

John Stankey, Chief Executive of AT&T, told CNBC that HBO and HBO Max’s average revenue per customer was $11.72 in the U.S. The new subscription option is meant to appeal to users on a budget who don’t mind the commercial interruptions. “Whether a customer chooses to buy the ad-supported product or buy the straight subscription product, it’s accretive in the same ways to our business,” said Stankey.

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The addition of a less expensive HBO Max tier could be viewed by some as the result of a business model that didn’t reap the financial success it planned on. But Stankey was adamant that the new subscription offering is “by no means an admission of something didn’t work out the right way.” He added: “It’s always been the plan.”

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It’s also worth noting that the advertisements included in the $9.99/month plan will only be for programming exclusively available on HBO Max. For many, that’s much better than having to sit through a slog of traditional commercials. As long as you don’t mind seeing trailers for Superman & Lois or The Nevers every now and then, the ad-supported plan is a great option. Especially if you’re already paying for Netflix, Hulu, Amazon Prime, Disney+, and the like.

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However, WarnerMedia CEO Jason Kilar said in a statement last year that the ad-supported HBO Max won’t include 2021’s fresh slate of Warner Bros. theatrical releases. So it’s up to you to decide if the new HBO Max plan is the right fit for your entertainment needs.

Gallery — All The Warner Bros. Movies on HBO Max in 2021:


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