Report: WarnerMedia Extended AWS Deal to Get HBO Max Out of Prime Video Channels
In November, it was reported that as part of their deal to bring HBO Max to Amazon Fire TV – WarnerMedia was able to get out of offering the service through Prime Video Channels.
This was apparently a major sticking point, which kept the service off the Fire TV platform for six months post-launch. Now, according to a report by The Information, we now know exactly how they were able to get the concession. Apparently, WarnerMedia extended their Amazon Web Services (AWS) contract in order to secure the change.
For now, current subscribers of HBO Max through Amazon’s Prime Video Channels will be able to log in to the HBO Max app with their Amazon credentials. However, at some point that will change in 2021. Then, you will need to sign-up directly with HBO Max in order to subscribe to the service.
Prime Video Channels is a huge drive of subscribers for streaming services, but it comes at a cost. It has been reported that Amazon keeps 30% of subscription revenue every month, which makes it an expensive channel of distribution. In 2018, TDG estimated that nearly 53% of HBO’s direct-to-consumer subscribers came from Amazon Channels.
The most recently launched streaming service, discovery+, plans to offer the streaming service through Prime Video Channels later this year. However, one of the sticking points for NBCU’s Peacock is the option to not include the streaming service in Prime Video Channels.