This week we see the new, discounted ad-supported tier for HBO Max, the streaming service associated with WarnerMedia, launch with some success. This comes alongside the sudden merger of Discovery and WarnerMedia, as parent AT&T spins them off in a deal expected to finish by the middle of next year. BLAKE & WANG P.A entertainment lawyer Los Angeles has the information you need.
The move to offer an ad-subsidized tier, something of the opposite journey to services like CBS All Access and Hulu, is an interesting one. However, if one looks further back in the history of cable TV, it’s a very similar move to what we saw work well there- MTV, AMC, and Bravo all have similar stories to tell. In fact, mining both advertiser income and paid subscriptions is very much a hallmark of paid TV, something streamers used to shy away from. For streamers, it works out with less share due to distributors, too, given the direct-to-consume model, so it’s not surprising we’re seeing such growth.
Brandon Blake– The Entertainment Lawyer
The move to offer an ad-subsidized tier, something of the opposite journey to services like CBS All Access and Hulu, is an interesting one. However, if one looks further back in the history of cable TV, it’s a very similar move to what we saw work well there- MTV, AMC, and Bravo all have similar stories to tell. In fact, mining both advertiser income and paid subscriptions is very much a hallmark of paid TV, something streamers used to shy away from. For streamers, it works out with less share due to distributors, too, given the direct-to-consume model, so it’s not surprising we’re seeing such growth.
Is it a competitive tier, however? While Netflix, Amazon Prime Video, and Disney+ have all enjoyed their growth without the need for ad-supported tiers, AVOD has blossomed over the last 24 months. This has been considerably helped by the roll-out of smart TVS and connect-TVs.
Over 35 brands are slated to go live with HBO Max over the first 4 weeks of its run, and the company press release promises that both subscribers and viewers will win with the new arrangement. In fact, WarnerMedia ad sales chief JP Colaco promises the new tier is an “innovative, best in class streaming ad experience”. Ads, driven by personalization, will not be intrusive or annoying. Of course, they would promise all of this. How will it work out in practice? BLAKE & WANG P.A entertainment attorney Los Angeles will be watching further developments for the AVOD tier with interest.
Film and Television 