HBO Remains Confident in Decision to Leave Prime Video Channels, Despite Losing 5 Million Subscribers
HBO has gradually ended its partnerships with other companies in hopes of creating its own customer base. Earlier this month, The Streamable reported that HBO Max was officially removed from Amazon's Prime Video Channels. This was first revealed in November, but at the time there was no clarity exactly when it would happen.
Prime Video Channels allows users to purchase memberships from various networks and streaming services. One of the available channels was HBO Max. Users could subscribe to HBO Max and others through Channels instead of going to each streamer’s website.
HBO’s agreement with Amazon had its pros and cons. While it may have been a good arrangement to help HBO Max at launch, the streaming service is functional without the support of a third party. A downside for HBO was not being able to craft a direct relationship with its own customer base. Another downside for HBO is that Amazon was keeping 30% of subscription revenue every month.
Five million of HBO Max’s total number of subscribers came through Amazon’s Prime Video Channels. As a result, of the elimination of this option, the streaming service will be forced to reacquire many of those users. Despite the loss of customers using HBO Max through Prime Video Channels, HBO does not appear to be worried. This is a change that the company wanted to make in order to bring in customers in a more direct manner.
“It’s important for us to own the customer,” Andy Forssell, general manager of HBO Max told Bloomberg. “If the viewer is in the app, we can tailor the home page to them. We can tailor what they show them next. We can respond to that in real-time.”
Forssell seems to be confident in the company’s decision. HBO has a goal of reaching 70 million subscribers on its streaming service by the end of the year. Though the company is losing 5 million Amazon-based subscribers, Forssell still believes the larger goal remains achievable. The streamer’s original content has been a success thus far and may continue to accelerate its growth.
If Prime Video Channels users want to continue accessing HBO Max’s content, they will have to sign up directly through HBO Max. At this point, it is unclear how many users will make the switch and whether that will make up for the subscribers through the change.
HBO Max is a subscription video streaming service that gives access to the full HBO library, along with exclusive Max Originals, and access to every Warner Bros. film on HBO Max on the same day that it hits theaters.
HBO Max has two tiers, an ad-supported plan for $9.99 and ad-free plan for $14.99. HBO Max without ads also includes features like the ability to download offline and 4K streaming.
They also will get Max Originals that aren’t available to HBO channel subscribers, like “The Flight Attendant” (Kaley Cuoco), “Love Life” (Anna Kendrick), as well as reboots to “Sex In The City” and “Gossip Girl.”