Report: WarnerMedia Ditches 3-Tier Streaming Service for $16-17 Plan with HBO & Cinemax Bundled

It seems that WarnerMedia may be second guessing their plans to launch a three-tier service for their upcoming streaming service. In November, they shared that the service would have an entry-level tier will focus on movies without original programming, while a second tier would include original programming and blockbuster, and a third tier which includes Warner-owned and licensed content.

Now, according to a report in the Wall Street Journal, the company will debut a single tier at launch for $16-17 which will include Warner Bros. movies, TV shows, HBO, and Cinemax. Currently, HBO and Cinemax are sold individually for $14.99 and $9.99, respectively — but generally discounted if bundled together. The company may make a cheaper ad-supported version of the service sometime in 2020, as well as a pricier option with live TV and sports.

At $16 a month, the WarnerMedia streaming service would be more expensive than Netflix ($12.99), Hulu with No Ads ($11.99), Prime Video ($8.99), and Disney+ ($6.99). The company will preview the service in September/October which Stephenson described last month as “a detailed look at the product, and that includes the breadth of new and existing content.”

Last month, Warner Media CFO John Stephens said the service would be “premium, premium, premium”. According to Stephens, it is expected to be “HBO-centric” and include the “whole inventory of owned assets that rests under WarnerMedia”, as well as “some Turner assets.”

It is expected that Warner Bros. shows like Friends would soon become exclusive to their streaming service. AT&T CEO Randall Stephenson has said said “we will be bringing a lot of these media rights, licensing rights, back to ourselves to put on our own SVOD video product.”