HBO Max launched on Wednesday into an increasingly crowded streaming market to compete with the likes of Netflix (NASDAQ: NFLX) and the recently launched Disney+ (NYSE: DIS). Max is HBO's second streaming offering after HBO Now, already questions are being asked as to what Max offers over Now, and whether it will be a viable offering.
HBO Max is the work of Warner Media and its parent company AT&T (NYSE: T). Max is the second streaming service offered under the HBO brand, which has already raised the question among consumers and the media: what makes Max different from Now? Where HBO Now was a streaming service exclusively for HBO's own content, HBO Max taps into the considerable library of content owned by AT&T and Warner Media, possessing content such as Cartoon Network properties, DC Universe properties, Studio Ghibli films, as well as HBO's library among other content.
The apparent intent of AT&T and Warner's offering is to, of course, claim a more substantial stake in the streaming market. HBO Now's offerings attract plenty of fans of HBO's recent properties such as Game of Thrones and classic properties such as The Sopranos; however, HBOs library is somewhat limited compared to the more extensive libraries on offer from contemporaries such as Netflix, Hulu, and Disney+, which offer content across numerous brands and properties. Max's offering is significantly larger than Now's, and is large enough to compete with its contemporaries. As evident through Max's more extensive library and inclusion of HBO's library, the secondary intent of HBO Max is to phase out Now, which Incoming AT&T CEO John Stankey referred to as the "future" of the company.
Despite the broader offering by Max, there is some skepticism over whether the venture will be successful. The chief concern is that HBO Max is entering a saturated market and entering it fairly late. HBO Max has to contend with Netflix, Hulu, Disney+, Amazon Prime Video (NASDAQ: AMZN), NBC's Peacock (NASDAQ: CMCSA) , Apple TV Plus (NASDAQ: AAPL), among others.
Another concern is the cost; at $15 a month, HBO Max is far more expensive than the basic Netflix subscription of $9 a month, Hulu's basic plan at $5.99 a month, and Disney+ at $6.99 a month. Under normal circumstances, the price difference would already be considerable, but the launch of HBO Max comes amid the Coronavirus pandemic, which has severely limited household funds across the United States.