HBO Max has exceeded its target goal for subscriptions, with a whopping 38 million customers in the United States subscribing to the service since its launch. However, while the platform has been a massive success, the coronavirus (COVID-19) pandemic has continued to affect parent company WarnerMedia.
Warner Bros.' total revenue in Q3 was $2.4 billion, which is down 27.7% from last year. This is due to several theatrical releases being delayed due to the COVID-19 pandemic. Meanwhile, Warner Bros.' operating expenses totaled $2 billion, which is down 26.6% year-over-year.
Although HBO Max has increased its subscriber base, AT&T has "rolled up" eligible HBO Max customers, even if they haven't used the service. Total "activations" of HBO Max sit at 8.6 million, which translates to 70% of current HBO subscribers who have not signed in to use the service.
"I would say absent the pandemic the game has played out much the way we expected it to play out," AT&T CEO John Stankey told analysts. Plans for an ad-supported version of HBO Max are also in the works, with the AVOD edition set to debut in 2021.
Source: Variety