HBO Max Launched

Unless You Use Amazon or Roku

HBO Max launched this week and I’m sharing my insights after taking it for a spin.

While I’ve heard of others confused about their HBO/HBO Go/HBO Now subscriptions and the process for accessing Max, I have 3 Apple TV devices in my household, and my “old” HBO Now app seamlessly upgraded to HBO Max.

However, two of the most popular streaming devices - Amazon and Roku, aren’t yet allowing current HBO/HBO Now subscribers to experience the new service. More on this below…

I believe that there are 4 key consumer elements, among many others, that largely determine the success/failure of any consumer digital video service. They are all intertwined and equally important. Here we go…

Content/Strategy

WM is claiming 10k hours of content at launch, and I didn’t count, but appears fairly robust. HBO Max is trying to reach a much broader audience than the original HBO, because the streaming business is really about creating a diverse library of shows that appeal to many different kinds of people with the hope that subscribers will enjoy just enough of them to keep coming back. For me and the original HBO, it was weekly programs like Real Time, John Oliver, Real Sports

If you are a fan of HBO, you’ll enjoy Max as it’s essentially all of the HBO content plus a whole bunch of films and series from WarnerMedia’s network of media businesses, including Friends, Big Bang Theory, South Park, Sesame Street, Crunchyroll programs, CW network programs, The Harry Potter franchise, DC’s film catalog, and classic WB films such as Wizard of Oz, Gone With the Wind, Casablanca, etc.. 

I’ve read that Max planned to have 31 original programs/series in its first year and 50 in its second, with approx. half targeting younger adults aged 16 to 34, and the balance divided between adult and kids/family. HBO Max is trying to win over kids because subscribers are less likely to cancel if the service appeals to every member of the family. These original programming plans though are likely to be effected due by current production disruptions from the pandemic. 

Experience

As mentioned, my transfer from Now to Max was easy via a software update after simply agreeing to the HBO Max Terms of Use and Privacy Policy. 

The HBO Max app is organized so that you can quickly jump into HBO's programming, DC's or Ghibli's, however, upon opening the Max app, was surprised to see thumbnails to view WarnerMedia’s library including Friends, Big Bang Theory and older HBO series as the top tray, with new HBO’s originals on the second tray. They obviously believe their value prop is rooted in these licensed programs. I’m not so sure, but more on that later.

It's been reported that Max is taking a more curated approach to surfacing your content compared with Netflix's data-driven recommendations. While I applaud any efforts at improving the UX, this is potentially dangerous, as Netflix's user interface is the premium streaming experience gold standard. 

Interestingly, HBO Max is experimenting with different shapes in its UI – a rectangle represents a single episode, a square is something personalized to your watch history and circles lead into a human element, like recommendations around a particular actor or character. This is cool and I can see other services offering similar UI.

The net/net is, it will simply take more time using the service to determine if the these features/functions are really improvements or unnecessary gimmicks. But I like the effort and creative thinking.

Devices

HBO Max is available in virtually all app stores across a wide variety of devices, including phones, tablets, the web, connected TVs and game consoles. However, as noted above, they are missing two of the biggest.

Max is not yet available to existing HBO subscribers or new users that utilize Amazon Fire or Roku devices for their streaming. And it sounds like this isn't a technical issue with Amazon or Roku, as WarnerMedia has said that "there is no deal in place" to bring the service to those platforms. This portends that the issue(s) are financial, likely centering on IAP fees/revenue sharing and user data. Disney+ initially launched without Roku, but the two very quickly reached an agreement. Fingers crossed for them on figuring this out.

Cost/Value

If you were already paying $15 for HBO/HBO Now, then Max is a real value. You get the same great HBO content PLUS a whole bunch of additional premium content for the same price. 

If, however, you weren’t an existing subscriber, $15 might appear expensive relative to the other premium streamers: Netflix ($13), Disney+ ($7), Prime Video ($13), AppleTV+ ($5). And both Apple and Disney are providing bundling opportunities with their other products/services for extended free periods lasting up to a year. Apple, for example, is giving away a year's subscription to anyone who's recently purchased an Apple device. Disney has a deal with Verizon for any of the carrier's mobile subscribers to get a year of Disney+ for free. 

BTW, I’m currently taking advantage of both Apple and Disney deals.

Summary

Ultimately, unless Max adds Prime and Roku devices, which make up approx. 70% of U.S. households, they may struggle to simply retain these current subscribers. Consumers purchased a Roku or Fire TV device to get access to their favorite services, not to have those platforms decide which services they can/cannot watch.

As my most-expensive streaming service (during a recession), HBO Max will need to work hard to justify it’s spot on my monthly credit card bill. And unless the other premium SVOD services raise their monthly prices (or Max lowers theirs), the value proposition for Max isn’t clear for new subscribers.

Given these current headwinds, HBO Max will likely have difficultly growing their subscriber base to their desired 50 million goal in the U.S. by 2025.