HBO Max Just Cut Its Price In Half

By Jason Collins | 13 seconds ago

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WarnerMedia is offering a half-off discount on HBO Max, following the company’s breakout from Amazon Channels. The offer will take the $14.99 monthly fee to $7.49 for the following six months and is suitable for both new and returning customers. However, it’s only available for a short period, and the offer ends on September 26.

According to Deadline, WarnerMedia is using the aggressive discount offer on HBO Max to try and counteract the loss of approximately 5 million HBO subscriptions that came through Amazon in the U.S., given that those subscriptions were shut down on September 15. This isn’t all that shocking, considering that the upper management of WarnerMedia wanted to break from Amazon Channels – a decision put into action two years ago. The platform has since removed HBO, ending a relationship that predates the current era of streaming media.

Despite its removal from Amazon Prime Video Channels, HBO Max, and all included HBO’s programming along with the additional 13,000 hours of content will still be distributed via Amazon Fire TV, which is an entirely different division within the Amazon empire. The Channels division held control over streaming data to the degree that didn’t suit WarnerMedia and its parent company, AT&T, which set out to break ties. As a result, about five million subscriptions that came through Amazon Prime were “canceled.”

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WarnerMedia’ HBO Max initially reported 67.5 million global subscribers (including the U.S.), and the loss of 5 million subscribers costs the company approximately 8% of its subscription base – not a small number. However, given the current price slash, it’s entirely possible for WarnerMedia to regain its 8% and even expand its base of subscribers. In addition, AT&T’s guidance of 70 million to 73 million global subscribers by the year’s end won’t be affected by the Amazon situation, though the company should report its quarterly numbers next month.

Before HBO Max launched, WarnerMedia decided to phase out HBO as a subscription through Amazon Prime Video Channels, granting its platform access to the streaming market and Amazon a degree of control over streaming content. However, this hindered HBO’s direct relationship with the customer and prevented the company from collecting user data for targeted advertising – for example, via HBO Max With Ads tier, which is priced at $10 and excluded from the price slash. Regardless, HBO’s decision to go through Amazon and other third-party channels was primarily due to the poor influx of subscribers after the platform’s disappointing debut.

With that said, HBO Max has been turning heads since its debut, though not necessarily in a suitable manner. It previously shocked Hollywood by announcing it would simultaneously debut its 2021 movie slate in theaters and on the streaming service, which irked and outright angered some of its development partners and film directors. However, it proved an excellent move since it brought a flood of new customers to the service, leading to the company’s growth, acquisition of new assets, and announcement of numerous titles, including Michael B. Jordan’s Superman series. Now that’s a good reason to subscribe to HBO Max, especially given the current price slash.