The Launch Of HBO Max Had Minimal Effect On Q2 Due To Marketing Missteps

The Launch Of HBO Max Had Minimal Effect On Q2 Due To Marketing Missteps

BURBANK, CALIFORNIA - OCTOBER 29: John Stankey, President & Chief Operating Officer of AT&T and ... [+] Chief Executive Officer of WarnerMedia, speaks onstage at HBO Max WarnerMedia Investor Day Presentation at Warner Bros. Studios on October 29, 2019 in Burbank, California. (Photo by Presley Ann/Getty Images for WarnerMedia)





Getty Images for WarnerMedia





The positive spin that AT&T put on the launch of HBO Max does not reflect the reality of the Q2 results. On Thursday the CEO of AT&T, John T. Stankey, stated that, "HBO Max had a strong launch, on track to hit its targets we laid out for you last fall,“ and that the launch was "flawless.“



Perhaps the company lowballed expectations, but the results also reek of missed opportunities.



While the report touts that HBO Max gained 4.1 million subscribers in one month, it barely slowed the bleed experienced by the traditional HBO. Combined, the traditional HBO and HBO Max finished the quarter with 36.3 million U.S. subscribers, up only 1.7 million (4.9%) from the 34.6 million at the end of 2019. The 4.1 million new subscribers all but vanished by the decline in cable and satellite subscribers. Worse, operating