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Almost exactly a year ago, Warner Bros. made a rather surprising announcement: In 2021, all the movies on its list will be Released on HBO Max the same day they hit theaters. Suicide Squad, Godzilla vs. Kong, Sand dunes, Matrix Recovery-All of them. All but the Cinephiles rebelled. Sand dunes manager Denis Villeneuve publish a letter in Diversity called the launch of HBO Max a “failure” and the decision by Warner Bros. parent company AT&T. “sacrificing” the 2021 lineup to the streaming service is “a desperate attempt to get audiences’ attention”. In many ways, Villenueve was right — it was a move aimed at increasing subscriber numbers in a market that was slowly becoming saturated with streaming services. But also, it worked.
Back when the company first announced plans to show daily HBO Max movies — internally codenamed Popcorn Project—HBO and HBO Max had about 61 million subscribers all around the world. Today, that number is nearly 70 million VND. (For context, Netflix has close to 214 million subscribers, while a smaller cable network like Starz has around 30 million.) Meanwhile, the streaming service has cemented a certain degree of interest with how to be a destination for original shows like HacksHBO’s Key Juggers Heirand of this week Sex and the city spinoff And just like that… “All things considered, HBO Max has had a good year,” said Sarah Henschel, principal analyst for media and entertainment at Omdia. “Their strategy is to release blockbuster movies like Sand dunes Daily live on HBO Max has kept the service relevant throughout 2021.”
In other words, HBO Max may have found a way to hack the streaming wars. Subscriber growth is stagnation on streaming services, but HBO Max was able to slowly, strategically gain a foothold in a business, when the service first launched, it doesn’t seem like it has much room for new players — and only has since. (Hello, Peacock! Welcome, Paramount +!) And holding on to that position is serious. One of the reasons for the service’s lackluster subscriber numbers in the third quarter of this year is that HBO Max has parted ways with Amazon Prime Video in favor of direct subscriptions to the service over those coming through Amazon. “While this may slow growth in the short term this quarter,” Henschel noted, “it is a strategy to boost revenue in the long term.” She also points to HBO Max’s ad-supported level, which costs $10 over the standard $15, as a way to expand its appeal in a crowded market.
Make no mistake, this is purely a gamble. Putting multi-million dollar introductory movies on a streaming service in the hope that they will attract and retain several million subscribers is a big bet. It can easily fail. This is also the kind of play that probably only works during a pandemic. Many people still enjoy the movie theaters, and HBO Max has provided a good alternative for those who still want to watch the big blockbusters. That also helps Warner Bros. “It’s been great for the service, especially during a time when schedules aren’t fully filled because of Covid-related production delays,” said HBO Chief Content Officer Casey Bloys. recently told Vulture. “It’s just a great steady stream of movies that people love.”
