HBO Max Spent Billions to Attract Your Attention
It takes a lot of money to take down Disney
Since the start of the year I’ve had a lot of fun writing about the constant developments in the upcoming streaming wars. As time ticks on, more competitors are released, and competition gets more fierce. Now that it’s March, we’re only two months away from the launch of HBO Max, the official streaming service of AT&T and WarnerMedia.
HBO Max has been working hard and spending a lot of their parents’ money to ensure they hit the ground running with proven hits that will excite viewers. The company has spent over $2.4 billion to acquire the streaming rights for The Office, Friends, Seinfeld and The Big Bang Theory for at least five years.
It seems strange to me that NBC wouldn’t hold onto their smash comedy juggernauts and stream them on their own streaming service, but then again, who wants to say no to billions of dollars?
The new HBO streaming service is charging a lot more than their competitors at the cost of $14.95 per month for anyone who isn’t already a HBO subscriber through DirecTV, AT&T or U-Verse TV. This subscription fee is double what Disney is charging, and the company knows it.
Howdy Fellow Kids
It seems that in an attempt to compete with Disney for the eyes of kids, HBO has renewed their deal with Sesame Street, guaranteeing four more shows and five more seasons of the tentpole series. This deal also secures their rights to stream the more than five decades of content Sesame Street has created since 1969.
HBO knows that they’re your go-to for historical boobs and political jokes, but they’d also really like it if your kids rely on them too.
For their part, HBO Max partner Warner Bros will be contributing to the platform their greatest contribution to kids entertainment, the Looney Tunes.
Other partners joining HBO Max are Cartoon Network, TBS, CNN, DC Comics, and TNT.
HBO Max CEO John Stankey told attendees at the Morgan Stanley Technology, Media and Telecom Conference that they’re targeting everyone in the family with the HBO Max service. They want kids, teens, mothers and fathers all watching their programming.
The Joke Only Gets Funnier
It’s strange how valuable old laughter-track comedies have become during the streaming war era. Anything that was once a hit is now fair game in a desperate competition of one-upmanship between the streaming giants.
Today’s young people are transfixed by the comedies of yesterday, and executives are banking on that, for the next five years at least.
The big question will be whether these platforms feel that it’s worth it to create original programming for their services, or just rely on old comedies. Netflix spends big on their original shows, but they don’t hold a candle in the ratings to classics like The Office.
One example of original programming we can definitely expect from the streaming service is a Game of Thrones prequel titled ‘House of Dragon’.
HBO is also commissioning new episodes of Adventure Time, Gossip Girl, and a confirmed Friends reunion special.
Friends is Like a Fine Wine — Only Better with Age
Friends is a classic example of a show that’s only increasing in popularity as time goes on. When Netflix originally negotiated their rights to air the sitcom, it cost them only $30 million. In 2019 the price went up to $100 million, and now in 2020, HBO is paying a number that’s in the hundreds of millions.
How could a show that aired its final episode 16 years ago be charging such a premium? Why is everyone still obsessed with this show? I can’t understand it because I was never a fan of the series.
Regardless of what I would watch, HBO is giving it their best with a combination of original, existing, and partnered programming to deliver on their hefty price-tag.
Although with series like Game of Thrones, The Wire, Curb Your Enthusiasm, The Sopranos, Veep, Westworld, and Boardwalk Empire under their belt; they must be feeling pretty confident that they can attract enough customers who are willing to pay their fee.
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