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Ad-supported HBO Max To Be Priced at $9.99 and Launch in June: Report

(Image credit: WarnerMedia)

The discounted, partially ad-supported version of HBO Max will be priced at $9.99 a month and debut in June, according to CNBC, which cited unnamed sources at parent conglomerate WarnerMedia

The version, which will include commercials, will be discounted by $5 over the ad-free, $14.99 version of the service. 

WarnerMedia has yet to confirm this go-to-market strategy. 

Last week, the conglomerate said that it added 2.7 million subscribers to its overall U.S. HBO subscriber ranks, a grouping which now totals 44.2 million—and which includes a large swath of customers who receive the programming service through linear pay TV platforms. 

WarnerMedia said in December that 17.1 million of its HBO subscribers get the service through the HBO Max app. But the conglomerate didn’t release an updated OTT number during the Q1 earnings report last week for parent company AT&T. 

During the associated earnings call, AT&T CEO John Stankey revealed that average revenue per user for all HBO customers is $11.72, a figure he called “impressive.

“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.

Daniel Frankel
Daniel Frankel

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!