The pricing and roll-out strategies of streaming services are linked to how much media companies have to gain, or lose, if consumers start relying on streaming video in lieu of cable TV.
that WarnerMedia was pondering a price between $15-$18 per month for HBO Max. If AT&T prices HBO Max at the same $15 price as HBO , it will easily be able to transfer HBO's existing 35 million subscribers to HBO Max. However, if it prices HBO Max at even a dollar or two more than HBO, it will need to convince current HBO subscribers to switch in addition to picking up new subscribers.
Disney also collects billions each year in advertising revenue connected to live sports on ESPN -- people have to watch ads when they can't fast-forward. ESPN+, a $4.99-a-month sports streaming service that does not include most of ESPN's most popular games or live sports.which features original shows and episodes of dramas and sitcoms that currently air on broadcast and cable TV, plus many popular shows that are now off air, such as "Seinfeld," "How I Met Your Mother," and "Modern Family."
When Disney decides the time is right, a bundle of Hulu, Disney+ and ESPN is a compelling replacement product for traditional pay-TV. Hulu with ads is $6 per month. Disney+ is $6 per month. If Disney were to make a standalone ESPN service at $10 per month, it would earn $22 a month from consumers. That's more than the $16.10 it takes in today.
Comcast's NBCUniversal brings in about $6 per month from its cable networks and an additional few dollars per month from regional sports networks, with cost varying from market to market. Comcast also knows that NBCUniversal, on its own, simply doesn't have as robust an offering as either WarnerMedia or Disney when it comes to content. While NBC Universal has a decent library of movies and shows, it doesn't have Disney's heft and it doesn't have HBO. Without partnering with someone, NBC Universal isn't in a relative position of strength when it comes to streaming.
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