The report cites insiders who tell them that apparently, WarnerMedia has plans to launch a cheaper, ad-supported version of HBO Max in 2021. As it stands, HBO’s plan costs $15 a month, making it more expensive than other streaming services from the likes of Netflix and the upcoming Apple TV Plus and Disney Plus.
The company also has plans to launch HBO Max this coming spring where it is expected to be even pricier than the current HBO plan, meaning that it will be hard to convince customers to subscribe to it when there are plenty of cheaper options available. However, if the report of a cheaper, ad-supported version is true, it could be of interest to some customers.
This seems to be taking a page out of Hulu’s book where the company also has a cheaper tier that comes with ads. The current goal by 2025 is to reach as many as 80 million global subscribers, and it is hoped that the ad-supported tier could help the company achieve that.