WarnerMedia is slashing the price of HBO Max in half following its removal from Amazon Prime Video Channels in order to make up for the inevitable loss of subscribers following the decision.
HBO is no longer available via the Amazon Prime Video Channels and this was a decision set in motion two years ago at the highest levels of the company to break from Amazon channels. Due to this change, today through September 26, the monthly subscription cost for HBO Max will be $7.49 for up to six months for anyone who accessed HBO via the Channels platform. The discount will be available to both new and returning subscribers. In addition to the HBO Max website, the discount is being offered via distribution partners Apple, Google, LG, Microsoft, Sony, Roku, and Vizio.
Even though the Amazon Prime Video Channels removed HBO earlier this week, HBO Max will still be distributed via Amazon Fire TV, which is a different part of the Amazon empire. The Channels section of Amazon has enabled them to control streaming data to a degree that became an issue for WarnerMedia and its parent company, AT&T. Nearly five million subscriptions to HBO Max are expected to be leaving because of the Channels decision which is a sizable amount. HBO Max encompasses all of HBO’s programming and adds 13,000 hours of additional movie and TV fare.
When the quarter ended on June 30, 2021, HBO and HBO Max together reported 47 million subscribers in the U.S. and 67.5 million globally. The company’s guidance of 70 million to 73 million worldwide subscribers will not be changing as a result of the Amazon decision. John Stankey, CEO of AT&T, has been a vocal advocate against tech giants exerting too much control over data. In the initial phase of direct-to-consumer streaming, offerings like HBO Now, Starz, Showtime, and CBS All Access saw strong growth via Amazon Channels, and those companies at the time were willing to trade off access to their data for scale. In today’s environment, the strategic objectives have shifted and media companies are determined to not surrender as much data. This is where WarnerMedia and AT&T stand on the situation. They’re not willing to just give up that data in today’s viewing climate.
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