Warner Media CEO Jason Kilar is in the spotlight after AT&T stepped up its lead on the growth of its streaming service.
The company said Friday that it expects HBO and HBO Max to grow from 61 million subscribers by the end of 2020 to between 120 million and 150 million subscribers worldwide by the end of 2025, up from the forecast previously of 75 million to 90 million. That growth will be driven in part by the launch of the service in 60 international markets in June as well as a lower-backed supported service, also discussed in June.
Kilar told CNBC on Friday that the larger guidance is due to “the response from the market in the first nearly 10 months, along with what we think will be very helpful in Latin America and the Region. Europe, where we already have a presence, both on the program side but also on the distribution side. ” He said, “It’s not just what we believe will happen outside of the U.S., it’s very much a duty where we see the U.S. market move in the coming years as well.”
Kilar predicts that HBO Max will be one of three emerging streaming giants, along with Netflix and Disney +, that surpassed 100 million subscribers earlier this month. And the upcoming HBO Max support service – Netflix and Disney one – will allow the company to offer a lower price.
“Being able to deliver the HBO Max quality experience, which has a very high shelf life in terms of quality, be able to offer that at a lower price and allow customers to decide which version would be best with them, “Kilar said.” I think it will definitely play a role in the U.S. market. ”
The company has not yet decided which markets will introduce a supported version.
Kilar also said that the version supported by HBO Max will be more profitable than the traditional membership service.
“It won’t be on the first day, give us four quarters maybe eight quarters to sort to get to our scale when it comes to advertising sales and advertising placements and all that. But when you look at what the opportunity is. is – and I say this is based on marketers and how much your dollars are putting on the table – to be able to be a part of this really lightweight advertising environment where the efficiency is very high. “
What now for notifications?
Kilar announced in December – to the displeasure and confusion of content creators and theater chains – that HBO Max would be streaming out Warner Brothers theater debates the same day they hit theaters.
That strategy was implemented just through the 18 theater calls Warner Brothers recorded this year, Kilar told CNBC
“We feel very good about that decision we feel very good about that strategy. I wish I could go back in time and be able to, instead of a day or two of conversations before we announced that news, I beg. we would have had a week or two. “He acknowledged,” I think we could have done a better job of that communication and those conversations with the storytelling partners and directors and producers and their producers. “
Kilar said, looking beyond 2021, the studio will come up with two different strategies for two types of photography.
“One of those is to be the big and big film in space films you’ve come to expect from us, which has a unique theater run. I think the run will be shorter than it used to be. The world of DC and Harry Potter and things like that; which will go to HBO Max on the same day as the same films have been handed out to performers and cinemas around the world. “
Between the films debating only in theaters, and those going directly to HBO Max, Kilar says they will invest more in making films for both. shape.