Warner Media CEO Jason Kilar is in the spotlight after AT&T increased its orientation to the growth of its streaming service.
The company said on Friday that it expects HBO and HBO Max to grow from 61 million subscribers in late 2020 to between 120 million and 150 million subscribers worldwide by the end of 2025, compared to its previous forecast of 75 million to 90 million. This growth will be driven in part by the launch of the service in 60 international markets in June, as well as a low-cost ad-supported service, also debuting in June.
Kilar told CNBC on Friday that the increase in orientation is “due to the market response in the first almost 10 months, combined with the things we believe will be quite useful in Latin America and Europe, where we already have a presence, both in the on the programming side, but also on the distribution side. “He added:” It is not just what we believe will happen outside the United States, it is very much a function of how we see the American market in the coming years as well. “
Kilar predicted that HBO Max will be one of three streaming giants to emerge, along with Netflix and Disney +, which surpassed 100 million subscribers earlier this month. And the next ad-supported service from HBO Max – Netflix and Disney don’t offer one – will give the company an advantage in offering a lower price.
“Being able to deliver the HBO Max quality experience, which is on the very top shelf in terms of quality, being able to offer it at a lower price and letting consumers decide which version they would like,” said Kilar. “I think it will play a certain role in the United States market.”
The company has not yet decided which markets will include an ad-supported version.
Kilar also said that the advertising version of HBO Max will actually be more profitable than the traditional subscription service.
“It won’t be on the first day, probably give us four quarters, maybe eight quarters to get to our scale when it comes to sales and ad placements and whatnot. But when you look at what the opportunity is – and I say that with based on marketers and how much their money is investing – to be able to be part of this very light advertising environment, where effectiveness is very high. “
What’s next for theatrical releases?
Kilar announced in December – much to the dismay and confusion of content creators and theater chains – that HBO Max would broadcast Warner Brothers’ theatrical premieres the same day they hit theaters.
That strategy was implemented only through the 18 theatrical releases that Warner Brothers scheduled for this year, Kilar told CNBC.
“We feel very good about this decision, we feel very good about this strategy. I wish I could go back in time and that we could have, instead of a day or two of conversations before we announce this news, I wish we would have one or two weeks. “He admitted:” I think we could have done a better job in terms of communications and conversations with the narrating partners and directors and producers and their representatives. “
Kilar said that, beyond 2021, the studio will take two different strategies for two different types of photos.
“One of them will be the great and epic reach films you expect from us, which have an exclusive theatrical exhibition. I think the exhibition will be shorter than before. The world of DC and Harry Potter and things like that; great epic films that I think they deserve it and will have an exclusive theatrical exhibition. But there will be other films, a large number of films that will go to HBO Max on the same day that those same films were made available to exhibitors and cinemas around the world. “
Between the films debuting exclusively in theaters and those that go directly to HBO Max, Kilar says he will invest more in the production of films for both formats.