With 3rd quarter numbers ow being released, how as HBO Max fair after its controversial exit from Amazon Prime Video earlier this year? We turned to Brandon Blake, a skilled entertainment lawyer with decades of experience in the entertainment business, for his analysis of the stats.
As expected, domestic subscribers took a heavy loss with the parting of ways. We see roughly 1.8M US subscriptions lost- compensated for by a 1.9M rise in international subscribers. The telecom giant also reported overall revenue just shy of $40B, a reduction of 6%. This is being pinned on the divestiture of DirecTV, however, not the Amazon Prime exit itself. Interestingly, earnings per share doubled from 2020. Earnings topped average estimates, while the overall revenue figures are either spot-on predictions or ever-so-slightly below.
Overall, these are not bad statistics, especially given the withdrawal. At this time last year, they sat at 38M subscribers domestically, showing a very sluggish start heavily impacted by the virus. NOr do they see the action slowing- it was also announced that they expect to meet the high end of their 70M/73M subscriber target by the end of the year. This is based mostly on high uptake in recently-launched Latin American services, and anticipation of growth through Spanish and Nordic territories later this year.
Of course, even the revised growth is half that predicted for Disney+. Yet, it’s still pretty impressive in a market that Disney and Netflix have in a chokehold. The exit from pay-TV also means they can further develop their AVOD tier, as it negates the inability to offer discounted tiers. It’s also worth remembering that many customers who were paying for HBO simply received HBO max subscriptions by default at the switch.
All in all, these figures are not bad at all in a year where many have struggled to reach growth. The Blake & Wang P.A team will be watching this service carefully as it grows further.
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