HBO Max Launches $9.99 Ad-Supported Plan

HBO Max Introduces Ad-Supported Tier

Despite the conclusion of “Game of Thrones,” HBO Max continues to innovate, recently experiencing a service disruption – a blackout – immediately before the “Mare of Easttown” finale, likely caused by high user traffic. For those yet to subscribe, now may be an opportune moment. The streaming service has launched a new subscription plan featuring advertisements, priced at $9.99 monthly.

Subscription Options and Features

The existing, ad-free service remains available at $14.99 per month. Subscribers can realize a 15% saving by opting for an annual pre-payment, regardless of the chosen tier.

Beyond the presence of advertisements, the ad-supported tier offers a maximum video resolution of 1080p. This quality level is adequate for most viewers, though potentially limiting for those with 4K viewing setups. Furthermore, content cannot be downloaded for offline viewing, and access to Warner Bros.’s newest theatrical film premieres on the same day as their cinema release is unavailable. These films will, however, become accessible on the platform several months following their theatrical debut.

Notably, original HBO programming will remain free of advertisements.

Advertising Details and Comparison

The ad-supported tier is designed to limit interruptions, promising “a commitment” to a maximum of four minutes of advertising per hour – among the lowest levels offered by major streaming providers. This mirrors the approach of Hulu, which provides a discounted, ad-supported subscription at $5.99 per month compared to its $11.99 ad-free option.

However, Hulu’s ad breaks can extend to nearly five minutes for a 30-minute program, with ads often unskippable. Netflix, conversely, offers a basic plan for $8.99 monthly, allowing streaming on one screen without HD resolution, and a standard plan at $13.99 per month. HBO Max’s new, competitively priced option is poised to challenge these established platforms.

Future of Advertising on HBO Max

HBO Max anticipates delivering “a greater personalization in the ads” shown to subscribers over time, alongside “more innovation in formats.” This could emulate the ad experience on Hulu, which has trialed viewer-friendly binge-watch ads.

Julian Franco, Vice President of Product Management at HBO Max, highlighted the launch of Brand Block, allowing brands to sponsor dedicated content segments, creating a more integrated advertising experience. The company is also exploring new ad formats, including pause ads and branded content curations.

Franco also stated that the platform has developed tools for data analysis and real-time reporting, enabling targeted ad delivery to specific customer groups.

Subscriber Growth and Expansion

As of April 2021, HBO Max and HBO collectively reached 44.2 million subscribers, adding 2.7 million domestic subscribers in the first quarter of the year. Netflix reported a 4 million subscriber increase during the same period, reaching approximately 207 million global subscribers. However, only 450,000 of Netflix’s new subscribers were from the U.S. and Canada.

Global Rollout

HBO Max is launching in 39 Latin American markets on June 29th. Expansion into Europe is planned later in the year. This international growth is expected to accelerate the platform’s overall subscriber base. Originally, AT&T, the owner of HBO Max, aimed for 50 million subscribers by 2025.

Current projections now anticipate reaching between 120 million and 150 million subscribers by the same date.

The ad-supported subscription option for HBO Max is currently available.

Updated June 2, 2021, 4:47 PM EST with additional commentary from HBO Max.