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2021-04-22

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AT&T CEO says 'glory days are still in front' of HBO despite fierce streaming competition

AT&T CEO John Stankey expressed confidence Thursday in the future of HBO as the telecom giant's pay

AT&T CEO says 'glory days are still in front' of HBO despite fierce streaming competition

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They're not behind us. They're different days, and the product is different,\" Stankey said on CNBC's\"Squawk Box\"shortly afterAT&T reportedbetter-than-expected first-quarter earnings results.HBO, which was foundedin 1972, has \"gone through reinvention over its years, and this is just the next chapter of reinvention,\" Stankey added.In the first quarter, AT&T added 2.7 million U.S. subscribers for HBO and HBO Max, its online streaming option thatlaunched in America in May 2020. The services now have a combined 44.2 million subscribers in the U.S. and almost 64 million worldwide.Netflix— founded in 1997 as a DVD rental by mail company and a decade laterintroduced streaming— finished the first quarter of this year with 208 million global subscribers, according to itsearnings reportreleased Tuesday. In March, Disney+topped 100 million subscribersin just 16 months after its debut.Stankey said he likes where HBO Max is positioned in the increasingly competitive streaming landscape, particularly as the service will soon expand into international markets, and as a cheaper, advertising-supported version launches in the U.S. in June. The ad-supported pricing has not be announced yet, though Stankey did say it'll be lower than the ad-free HBO Max cost of $14.99 per month.\"Our domestic business is still scaling,\" said Stankey, who took over as AT&T's chief executivein July. He had been president and chief operating officer.\"We fully expect that there's a receptive market for, at least, two-thirds of U.S. households that are going to want more than one streaming service,\" he added. \"Netflix is a very capable and solid product that I'm sure many households are going to choose to have, and we'd like HBO Max to be one of those products.\"Stankey touted HBO and HBO Max's average revenue per user of $11.72 in the U.S., saying it's \"really impressive, the ARPU is as strong as it is.\" At the same time, he said AT&T believes the ad-supported HBO Max will expand the pool of potential subscribers, while setting it apart from some of its rivals.\"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,\" Stankey said. Giving consumers the choice to choose which version of HBO Max they prefer \"is a strength\" and \"by no means an admission of something didn't work out the right way. It's always been the plan,\" he added.Shares of AT&T — jumping roughly 5% in morning trading — were up nearly 9% in 2021.","news_type":1},"isVote":1,"tweetType":1,"viewCount":116,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":10,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}

AT&T CEO says 'glory days are still in front' of HBO despite fierce streaming competition

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