They are not the pioneers in the AVoD model: streaming with advertisements is a recurring reality in the US, opting for this format many of the services that the great traditional television have launched in their conversion to the new on-demand model.However, HBO’s change does imply a milestone in the traditional model of pioneering streaming players. HBO was one of the first companies to launch its video-on-demand format, and it did so with an ad-free model (because ad-free was also its television). It was the model he used to set out to conquer the global market. The platform was free of ads and was betting on a somewhat more ‘cultural’ line of content.
In the war for audiences, however, and with increasing competition from different services, HBO went on to become HBO Max, first, and potentially open up to Brazil Email List advertisements later. All this, of course, only happens for now in the US, although this model is expected to set the tone for the company’s global strategy.HBO Max was where its owners, Warner, launched some of the great general public premieres that they had planned for recent months and that the coronavirus removed from the cinema. The platform seeks to reach a massive group of consumers (in fact, its latest appointments in executives go in that direction). Now, HBO Max will also be the first of the big platforms in the video-on-demand market to move to ads.
The presentation of the new format was made at the WarnerMedia upfront, the usual time when US TV giants present their next potential hits and try to convince advertisers. HBO Max with ads will arrive in the US market in the first week of June and will cost $ 9.99, about 8.18 euros (although the giants usually make an equivalent of one euro for one dollar when converting prices). Viewers will access all content, but they will do so with ads.
And while WarnerMedia promises that HBO Max will have “the lightest ad load of ad streamers,” one wonders if that price will be enough to capture viewers’ attention. First, the ad-free model isn’t much more expensive, coming out at $ 14.99. Second, the prices of the other AVoD services are lower. Hulu’s version with ads costs $ 5.99 a month (even less if you pay for a full year at once).
HBO does not expect so much to reach the customers it already has with this model, but rather to attract new subscribers with the claim of a lower price. To advertisers, you are promising a “superior marketing environment”, less ads and engagement and “efficiency”, positioned with “premium” content.The ads will be sold in three formats: in brand block (basically, the pause of the ads, “brands have a content block and consumers have a limited shopping experience), in paused ads (which are served when the consumer pause playback) and branded discovery (announcements that will surround the content discovery process).
Is this model going to arrive in Spain? Not for now. The only thing that WarnerMedia says in the press release about what will happen in other countries is that it will launch HBO Max without ads in 39 countries in Latin America and the Caribbean at the end of June and that it will upgrade the HBO operating in Europe (Spain included) to HBO Max “later in the year”.
Therefore, in Spain the improved version of HBO will land, but not the one that includes ads, at least for the moment. In the United States, the owner company already has an infrastructure prepared to sell advertising, the one linked to its televisions, something that one might wonder if it has in other markets.Maybe they need time to do it. In Genbeta they remember that those responsible for HBO do not limit these news clearly to the US and usually speak in terms of global growth.