Jason Kilar, CEO of Warner Media, is in the spotlight after AT&T raised its guidelines for growing its streaming service.
The company announced on Friday that it expects HBO and HBO Max to grow from 61 million subscribers in late 2020 to 120 to 150 million subscribers worldwide by the end of 2025, compared to its previous forecast of 75 million to 90 million. This growth will be driven in part by the launch of the service in 60 international markets in June, as well as a lower-cost, ad-supported service also launched in June.
Kilar told CNBC on Friday that the increased forecast was due to “the market’s response for nearly the first 10 months, combined with what we believe will be very helpful in Latin America and Europe, where we are already present will be.” both on the programming side and on the distribution side. “He added,” It’s not just what we believe outside of the US, it also depends on where the US market is going in the years to come. “
Kilar predicted that HBO Max would be one of three streaming giants along with Netflix and Disney +, which had 100 million subscribers earlier this month. And HBO Max’s upcoming ad-supported service – Netflix and Disney don’t offer any – gives the company the advantage of offering a lower price.
“To be able to deliver the HBO Max quality experience that is top of the line in terms of quality in order to be able to offer it at a lower price and allow consumers to choose which version they want,” said Kilar . “I think it will definitely play a role in the US market.”
The company has not yet decided in which markets an ad-supported version will be offered.
Kilar also said that the ad-supported version of HBO Max will actually be more profitable than the traditional subscription service.
“It’s not going to be the first day, you probably give us four quarters, maybe eight quarters to be our order of magnitude when it comes to ad sales and ad placement and so on. But if you look at the opportunity – and I say this is based on marketers and how much your dollars are on the table – to be part of this very light advertising environment where effectiveness is pretty high. “
What’s next for theatrical releases?
Kilar announced in December – to the dismay and confusion of content creators and theater chains – that HBO Max would stream Warner Brothers’ theatrical debuts the same day they hit theaters.
That strategy wasn’t implemented until the 18 theatrical releases Warner Brothers had planned for that year, Kilar told CNBC
“We feel very good about this decision. We feel very good about this strategy. I wish I could go back to the past and instead of a day or two of conversations before we announced this news, we had an or Had two weeks. “He admitted,” I think we could have done a better job on this communication and these conversations with the narrators, directors and producers and their representatives. “
Kilar said the studio will have two different strategies for two different types of images after 2021.
“One of those is going to be the big and epic movie you expect from us that has an exclusive theatrical run. I think the run will be shorter than it was in the past. The world of DC and Harry Potter and things like that; big, epic Films that I think are deserved and will have an exclusive release in theaters, but there will be other films too, a large number of films that will go on HBO Max on the same day as these films have been shown to exhibitors and cinemas around the world Provided. “
Between the films that exclusively debut in theaters and those that go straight to HBO Max, Kilar says they’ll be investing more in producing films for both formats.