Company Predicts Subscribers Increase
Before launching last year, the telecommunications business projected HBO Max and HBO would amass 50 million subscribers by the end of 2025. At the time, HBO already had a majority of that subscriber count — around 33 million — which made 50 million seem like a low bar for the telecommunications company to achieve.
Today, AT&T updated its five-year forecast. The business is predicting HBO Max and HBO subscribers combined will reach a total of anywhere between 120 million to 150 million by the end of 2025. For the same period, the business previously projected a combined total ranging from 75 to 90 million.
According to the telecommunications company, HBO Max is set to launch in 60 markets outside of the United States (US) in 2021, and the business is also launching an advertising video on demand, or AVOD, supported version of HBO Max.
In January, The Hollywood Reporter revealed that two AT&T subscription services had 41.5 million US subscribers, compared to 38 million in September. By the end of 2021, the telecommunications company is expecting to see total global subscribers for HBO Max and HBO reach 67 to 70 million.
The news of this forecast comes a few weeks after Startup Savant reported that AT&T is selling its majority stake in satellite television business, DirecTV.
Today, AT&T stock has increased 3.84% at $30.67 per share.
Rise of Subscription Services
While HBO Max may have 10,000 hours of content from WarnerMedia brands like Warner Bros., New Line Cinema, and Cartoon Network, the subscription service is up against some tough competitors.
Since launching in 2019, Disney+ has amassed more than 100 million subscribers. Other video subscription services like Netflix and Hulu also boast big numbers with 203.67 million and 36 million subscribers respectively. Each subscription company is projecting their own growth that will be in competition with HBO Max.
That said, the video subscription service industry is continuing to grow as more people move away from traditional cable or satellite television. The Associated Press reported that between 2010 and 2020, the total number of subscribers for US and Canadian satellite television services dropped by 27 million. On the flip side, the global video streaming market was valued at 50.11 billion in 2020, and is expected to grow at a CAGR of 21% between 2021 and 2028.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.