Premium video struggles but HBO Max racks up 38MN subs in AT&T Q3 | Major Businesses | Business
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As its parent AT&T was reporting solid wireless and fibre subscriber gains reflecting what it said was resiliency of core connectivity businesses, WarnerMedia’s video business showed contrasting fortunes with the brand new streaming service HBO Max revealing encouraging early growth.
HBOMax 28May2020
For the quarter ending 30 September 2020, AT&T’s Entertainment Group reported a record high 357,000 AT&T Fibre new customers and 158,000 total broadband net adds. The company claimed ‘solid’ IP broadband and video ARPU gains but with premium TV losses in the quarter. These amounted to a total 590,000 net loss, said to be the result of lower churn and higher quality base. These were partially offset by gains from AT&T TV, the Android TV- powered service offering a mixture of live TV with video streaming and apps.

The big and interesting numbers in the quarter were to be sound in the WarnerMedia division. Total US HBO and HBO Max subscribers topped 38 million and 57 million worldwide, respectively with the former figure exceeding by two million the previously announced year-end target. HBO Max activations more than doubled from second-quarter levels and the company is on track to launch an HBO Max advertising-supported service in 2021.

“We delivered a solid quarter with good subscriber momentum in our market focus areas of connectivity and software-based entertainment,” said John Stankey, AT&T chief executive officer commenting on the third quarter results. “Wireless post-paid growth was the strongest that it’s been in years with one million net additions, including 645,000 phones. We added more than 350,000 fibre broadband customers and are on track to grow our fibre base by more than 25% this year. And we continue to grow and scale HBO Max.”