HBO Max will launch in May 2020 at $14.99 per month and feature a mix of HBO shows past and present, original programs, and content from other brands owned, co-owned or licensed by AT&T, such as Warner Bros. Pictures, TBS, TruTV, Adult Swim, Cartoon Network and Sesame Workshop. Shares of AT&T ticked up 0.24% in after hours trading.
"In the era of Amazon, Apple, Google and Netflix, scale is no longer defined by distribution to a quarter of U.S. consumers. It's a global game," WarnerMedia CEO John Stankey told an audience. "HBO Max will have a positive and immediate impact on the stickiness of our wireless and broadband offerings."
HBO shows -- including current hits such as Succession and Westworld, and past hits like Sex and the City -- will serve as the anchor of HBO Max. But the service will also go beyond the adult-oriented programming that HBO is best known for.
HBO Max will have 10,000 hours of content at launch, executives said, while also emphasizing the quality standards that distinguish HBO content from competitors such as Netflix (NFLX) - Get Report , Amazon (AMZN) - Get Report , Disney (DIS) - Get Report or Apple (AAPL) - Get Report .
Children's content is one feature of the service. HBO struck an exclusive licensing deal with Sesame Workshop, creator of beloved children's show Sesame Street, and will also wrap in a variety of original children's shows, and content from its various properties, in the price of an HBO Max subscription.
HBO Originals are another exclusive offering of HBO Max. HBO has 50 original projects rolling out within the first year, which include original shows, films, documentaries and unscripted programming spanning a multitude of genres.
HBO Max will also feature a large film library with an emphasis on recent box office hits, such as The Joker and others distributed by Warner Bros. Pictures. The entire DC live-action film library, which includes the Superman and Batman franchises, will also be included.
Animation, both adult and children-oriented, is also featured extensively in an HBO Max. HBO inked exclusive rights to South Park and the cult hit Rick and Morty, and will also serve up Cartoon Network shows, Looney Tunes classics and reimagined originals, and library content from Adult Swim. Anime fans can also watch content from Crunchyroll, which AT&T partly owns, and Studio Ghibli.
Friends, the 90's comedy that's seen a resurgence among the Gen Z set, will also stream exclusively on HBO Max, along with content from TNT, CNN Original Series, TruTV, among other content. HBO also struck more targeted deals for popular shows, one example being the BBC show Doctor Who, which will stream exclusively on HBO Max.
HBO Max will be free for existing HBO subscribers, and AT&T customers will also be offered bundles with HBO Max included at no extra charge, executives said. The company also previewed the technological features of an HBO Max subscription, including parental controls, curation and collections designed to make the app both family-friendly and user-friendly.
As for revenue, AT&T executives said HBO Max will generate between 75 million and 90 million global subscribers and $5 billion in incremental revenue by 2025. In 2020, the company expects to spend $2 billion on HBO Max.
Shares of AT&T are up 28.8% so far this year.
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