*HBO Max is lowering its subscription cost by launching a new tier that will be ad-supported and more affordable than the current $15 a month charge.
“It turns out that most people on this planet are not wealthy,” CEO Jason Kilar said Thursday during the Morgan Stanley Technology, Media & Telecom Conference, per Deadline. “If we can wake up and use price and be able to invent and do things elegantly through advertising to reduce the price of a service, I think that’s a fantastic thing for fans. And I do think once they see it — because I’ve seen the service in the terms of the designs that we’ve come up with — I think people are going to be so excited about how we’ve been so thoughtful about the insertion of advertising and how it’s a very organic nature of the experience.”
Kilar said HBO Max will launch a new ad subscription tier later this year. Pricing and details will remain under wraps as they are still in “experimentation mode.”
New WB blockbusters, new HBO and Max Originals, and so much more… all with one subscription 🤯 pic.twitter.com/TyHjN7d6xx
— HBO Max (@hbomax) March 3, 2021
“Is theatrical attendance going to have a crazy resurgence because people have been cooped up for a year?” he asked. “I could easily see that happening. And we will be there to serve them in that situation, and proudly so. When you look at our development pipeline, we absolutely are developing movies for theatrical exhibition.”
Among the other streaming giants, Netflix is ad-free for $13.99 per month, Disney+ starts at $6.99 per month, ad-free. Amazon Prime Video costs $12.99 per month.
CBS All Access has rebranded as Paramount+ and offers ad-supported and ad-free options. NBCUniversal’s streaming service Peacock has a premium tier for $4.99 per month and ad-free costs $9.99 per month. The price points are the same for Paramount+.