HBO Max CEO Stands By Controversial Movie Strategy, Cites Subscriber Growth & Retention
After the bold decision was made to release the entire 2021 Warner Bros. slate on HBO Max the same day the films debuted in theaters, everyone looked at CEO Jason Kilar like he poured his milk in before his cereal (because that is just as crazy). Now that fists are unclenched and people can relax, it’s time to look at why this was such a surprising success.
During the fourth quarter, WarnerMedia pumped out movies like “Dune” and “Godzilla vs. Kong” the same day they hit theaters, causing a frenzy of filmmakers desperate for that box office hit cash. Kilar’s response? “We’d make the same decision again,” he told Insider.
And his instincts were right because 13 months later, WarnerMedia has cut hundreds of millions of dollars in checks to appease clients, and the day-and-date strategy (a.k.a Project Popcorn) supercharged subscriber growth for the latecomer streaming service.
What seemed like a move that made “no economic sense,” according to Christopher Nolan, doesn’t seem so bad after looking at the numbers that HBO brought in. At the end of 2021, the 20-month-old streaming service had a total of 73.8 million global subscribers, which was an added 4.4 million global subscribers in the fourth quarter and nearly 12.8 million in 2021. It is still smaller than Netflix, which has 214 million subs as of September, and Disney+ with 118 million.
HBO Max, known as an underdog in Hollywood, became the most downloaded entertainment app in the US last year, per data firm Apptopia. The platform had 45 million downloads between December 21, 2020 and December 20, 2021, whereas both Netflix and Disney+ fell off the chart.
The dramatic pivot with Project Popcorn was “critical,” said the head of HBO Max, Andy Forssell, noting that the streamer’s original programming calendar was lacking in the beginning of 2021 as a result of production delays during the pandemic. “We knew we were going to be lean, so the movies were immensely valuable in a year where we needed content.”
Forssell added, “It worked for us. It helped drive retention. Did some people come in and leave after a month? Absolutely. That happens with any cohort of subscribers that you get under any circumstances. But the good news for us is that we did manage to skew it the other way.”
Another decent strategy that worked well for WarnerMedia was choosing to have a 30-day deadline. Each of the Project Popcorn films was available on HBO Max for only 30 days after its initial debut, such as “Wonder Woman 1984”. However, they will all eventually make their permanent home on HBO Max.
That strategy caused viewing to spike at the beginning and end of the streaming window, said Forssell. “People may know they want to watch something but we need to give them a reason to choose today as the day they’re going to watch it versus all their other choices, and that 30-day deadline tended to do that.” He also admitted that it would be a better consumer experience if the films never left in the first place.
In 2022, WarnerMedia’s new strategy will include a 45-day window for films that debut exclusively in theaters and a direct-to-HBO Max release for around 12 films. While upcoming features like Robert Pattinson starrer “The Batman” and comic book sequel “Aquaman and the Lost Kingdom” make their way to the service following a shortened theatrical window, new subscribers will be drawn to the service and HBO Max can retain this growth with series releases in between. Forssell commented, “in the most wild outcomes of success, you’re still going to have more people that have not seen the film than have, and that’s a huge opportunity to harness for HBO Max.”
HBO Max es un servicio de transmisión de video por suscripción que brinda acceso a la biblioteca completa de HBO, junto con Max Originals exclusivos, y acceso a todas las películas de Warner Bros. en HBO Max poco después de que estén en los cines.
HBO Max HBO Max tiene dos planes: un plan móvil “Mobile” ($ 13.900 / mes), que está diseñado para un solo usuario en su dispositivo móvil, así como un plan familiar “Multitelas” ($ 19.900 / mes) ofrece a las familias acceso a 3 usuarios simultáneos.
Los suscriptores de HBO Max obtendrán Max Originals adicionales que incluyen Love Life, Raised By Wolves, Dune: The Sisterhood , Tokyo Vice , The Flight Attendant , Gremlins , Legendary, Craftopia, los nuevos dibujos animados de Looney Tunes, y The Not Too Late Show with Elmo de Sesame Workshop.