AT&T said that the number of activated subscriptions to the streaming service HBO Max doubled in the fourth quarter to 17.2 million compared to the third quarter, partly due to the release of Wonder Woman 1984.
The number of total domestic subscriptions to both regular HBO and HBO Max reached 41.5 million, which the company said was two years ahead of its initial forecasts and increased from 34.6 million in the 2019 quarter. Before the debut of HBO Max in May 2020, AT&T said its five-year goal was to have a total of 50 million US subscribers and between 75 and 90 million globally.
While HBO Max costs $ 15 pr. Month for direct retail subscribers, existing HBO subscribers have the right to activate their subscriptions at no extra cost. AT&T struggled early on to drive these conversions, especially with rivals launching far cheaper streaming alternatives. The company recently decided to significantly increase the ante on the streaming service (to the dismay of many in Hollywood) by putting the entire 2021
IMDb TV, Amazon’s free streaming service, now available on Roku
HBO Max, which competes with other new services like Disney +, Apple TV + and Peacock, has benefited in the fourth quarter from a distribution deal with Roku reached in December. A similar game-changing distribution deal was signed with Amazon in November, finally opening access to the two dominant U.S. streaming providers.
The streaming news highlighted quarterly results that exceeded Wall Street forecasts, although they fell from the previous year as the telecommunications and media giant continued to cope with the effects of Covid-19.
Earnings per The stock traded at 75 cents in the quarter ended December 31, compared to 89 cents in the same period in 2019 with revenue of $ 45.7 billion. Falling from $ 46.8 billion Analysts had expected earnings of 73 cents and revenue of $ 44.6 billion.
The mobility department drove quarterly performance with equipment revenue in the unit, which rose 28% to $ 6.1 billion. AT&T said the gains were due to sales of smartphones, a mix of cheaper postpaid smartphones and higher sales of postpaid data devices. The rollout of 5G services as well as new Apple iPhones helped boost quarterly results.
Revenue at WarnerMedia dropped nearly 10% from a year ago to $ 8.6 billion. AT&T estimated that its TV and film revenue took a hit of 1.6 billion. $ In the quarter. Warner Bros.’s revenue alone is 21%.
Pay-TV subscriptions continued to slide, with 617,000 video customers losing in the quarter, though broadband growth offset the declines, as it has in recent years. AT&T TV Now, the Internet-delivered TV package launched in 2016 as DirecTV Now, has closed, and AT&T is in negotiations to sell a controlling stake in DirecTV, which it acquired in 2015.
Video revenue fell 11% to $ 7.2 billion, due to declining premiums and
OTT subscribers, partially offset by higher premium TV revenues per Customer and a host of election ads. On top of the challenge of operating under Covid-19, the company said the quarterly revenue figure included estimated 2020 billing credits to be delivered to subscribers for lower delivery of regional sports network programming.