When MAX, the streaming service formerly known as HBO Max, debuted last month in the United States, there were issues. In case you’re not familiar with MAX, here’s all the information you need.
For example, many subscribers experienced difficulties logging in to the new MAX platform. Furthermore, the platform was constantly giving errors and did not allow for movie and series playback. However, it appears that despite these issues, MAX is already a success.
According to the paid Wall Street Journal, 70% of HBO Max and Discovery Plus subscribers switched to the new MAX service during its first week of launch. Honestly, a 70% conversion rate in such a short time is an impressive figure.
MAX pricing, much more expensive than HBO Max
MAX is available in three versions: MAX Ad Lite for $9.99 per month, MAX Ad Free for $15.99 per month, and Ultimate Ad Free for $19.99. HBO states that around 20% of the content currently viewed on MAX is from Discovery Plus. If you want to know the prices in detail, click here.
This lower proportion may be due to the fact that there is still a separate Discovery+ app, but there is no equivalent to HBO Max, at least in the United States. We will see how the audiences respond when it is rolled out worldwide.
Is MAX a success or a failure?
Jean-Briac Perrette, Global President of Streaming at Warner Bros. Discovery, stated to The Wall Street Journal that the number of cancellations for Discovery Plus was “very much in line with what we expected.”
And the 30% of HBO Max subscribers who have not yet switched to the new app are still paying subscribers, which means Warner Bros. Discovery continues to generate revenue.
This indicates that the number of subscribers is likely to remain around the 96 million mark the company had at the end of last year.
However, for Warner Bros. Discovery, the numbers that matter are not just the number of subscribers. It’s the dollars. According to their CEO, David Zaslav, the company initially expected their streaming business in the U.S. to be profitable by 2024.
Now, they expect to achieve that milestone by the end of this year, much earlier than anticipated. In statements to industry analysts and investors, Zaslav said, “The key here is that our streaming business is no longer a bleed.”
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