HBO Max's decision to release all 2021 movies on their premiere dates resulted in economic success despite controversy in the industry.
Jason Kilar predicts that the streaming market can reach a billion subscribers by offering both ad-free and ad-supported options, with even Netflix eventually adopting this strategy.
Deep dives
Transformation of HBO Max
Under Jason Kylar's leadership, HBO Max transformed from a humbly launched service to becoming the number two player in the streaming race, surpassing Disney+. With a robust slate of original content and a significant increase in subscribers, the service has established itself as a major player in the direct-to-consumer global market.
Controversy and Success of Day-and-Date Release Strategy
Warner Media's decision to release all 2021 movies on HBO Max the same day as theaters caused controversy in the industry. However, Kylar defends the strategy, stating that the service compensated partners generously and provided a crucial choice for viewers during the pandemic. By analyzing first views and consumption metrics, he argues that the decision resulted in economic success for the company.
Future of Streaming and CNN Plus
Kylar believes that the streaming market can reach a billion subscribers by offering both premium ad-free options and more attractively priced ad-supported versions. He predicts that even Netflix, currently against ads, will eventually adopt this strategy. In terms of CNN Plus, Kylar envisions it being a standalone service with a dedicated mobile app and as an option bundled within HBO Max, maximizing its accessibility and appeal to a wide range of consumers.
Matt is joined by Jason Kilar, who has recently announced his resignation as CEO of WarnerMedia. He discusses the choice to drop Warner’s 2021 slate of movies directly on HBO Max on their premiere dates, the vision for CNN+, his decision to resign ahead of Discovery’s merger with WarnerMedia, the future of advertising on streaming services, and where Jason is headed next.