On May 27, HBO Max will celebrate its first year of life. Just a few days later, fans of the “It’s Not TV” network’s streaming service will get a chance to join in the birthday festivities when a new, lower-priced—and yes, ad-supported—version of HBO Max will become a reality for just $9.99 per month.
Budget-conscious binge-watchers have been waiting for the official announcement since early March, when the network first floated the idea of a bargain-priced subscription tier. Currently, all HBO Max subscriptions are ad-free and cost $14.99 a year. So if you don’t mind putting up with a few commercials, you’re looking at an extra $5 per month in your pocket or a savings of $60 per year (which, if you subscribe to basically all the major streaming networks, can add up surprisingly fast).
One unique part of this new plan, according to CNBC, is that even if you opt for the less expensive tier, ads will only play during programs that are exclusive to HBO Max, while all your old favorites will remain delightfully ad-free. Meaning that the final scene of The Sopranos won’t cut to a commercial to heighten the suspense (though it might cut out for artistic reasons).
Though $9.99 might seem like a bargain price to subscribers who are already paying $14.99, or those who have opted not to purchase HBO Max because of price concerns, pay-TV providers (a.k.a. cable and DISH) aren’t thrilled about the decision, though they are prepared to offer the new option to their non-HBO customers as well as internet-only clients. While $9.99 is twice the price of some streaming networks like Paramount+ and Peacock, pay-TV providers like Comcast will see a decline in revenue.
According to CNBC:
“Pay-TV distributors haven’t been pleased with AT&T’s decision to sell an advertising-supported HBO product at $5 less than HBO, according to people familiar with the matter. Distributors share revenue with HBO for subscriptions sold at anywhere from 30%-60% depending on size, the people said. An operator such as Comcast would take in nearly $9 of a customer’s monthly $15 charge.”
But you don’t care about that.
(Via CNBC)