HBO Max is off to a slow start. In its first month, the service that debuted May 27 garnered just under 3 million new sign ups while only about 1 million existing HBO subscribers have accessed the HBO Max app, which is free to all HBO subscribers
— with the new service helping to boost overall HBO and HBO Max customers by a net 1.7 million over the first six months of 2020.reported 36.3 million total U.S. subscribers to HBO Max and HBO, up from 34.6 million at Dec. 31, 2019. That’s an increase of 5% over that time period. However, traditional HBO lost 2.1 million subscribers during the first quarter.
AT&T disclosed what it termed “wholesale” and “retail” subscribers for HBO and HBO Max. Wholesale subscribers are those that pay for HBO through an existing MVPD, whether a cable operator like Comcast or AT&T’s DirecTV or a virtual MVPD a la YouTube TV and Hulu. Retail subscribers are those who purchase HBO Max directly from WarnerMedia through the internet.
There are another 5.9 million existing HBO subscribers that do not have access to HBO Max because they receive HBO through an MVPD that does not have an HBO Max carriage agreement with WarnerMedia. That number includes subscribers that receive HBO through Roku and Amazon, two key OTT distributors that have been wrangling with WarnerMedia over the terms of striking an HBO Max carriage pact.
“Customer engagement [for HBO Max] has exceeded our expectations,” Stankey said during AT&T’s second quarter earnings conference call. He complimented the WarnerMedia team on what he called a “flawless launch,” despite criticism that the multiple HBO brands in the marketplace led to confusion and roadblocks with distribution via Amazon and Roku.
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