HBO Max promised to offer the lowest commercial ad load in the streaming industry to four minutes each hour.
“Advertising is a time-tested way to reduce the cost of great entertainment and reach a wider audience,” said EVP & General Manager, HBO Max, Andy Forssell.
Netflix Inc (NASDAQ: NFLX) offers an ad-free streaming service.
HBO’s ad-supported tier costs $9.99 per month. The commercial-free version costs $14.99 per month. Subscribers can also get a discount for an upfront one-year subscription.
Netflix costs $14 in the U.S., while The Walt Disney Co’s (NYSE: DIS) streaming option is priced at just $8. AT&T has been counting on the lower-cost ad-supported option to promote HBO Max.
The ad-supported tier will not feature Warner Bros. 2021 film debut on HBO Max on the same day of the theatrical release. The ad-supported version will not support the download of shows for offline viewing. However, both versions will be free of ads during HBO original shows.
Last month AT&T agreed to the billion merger deal between its WarnerMedia division and Discovery.
Price action: T shares traded lower by 0.29% at $29.24 on the last check Wednesday.
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