Since its launch on May 27, 2020, HBO Max has accumulated more than 4.1 million subscribers.
While 1.1 million of these subscribers gained free access through TV subscriptions for HBO, with a subscription costing $14.99 per month, the total revenue is significant.
However, with WarnerMedia already investing $1.2 billion into the service and COVID-19 affecting the production of movies and TV programs, it’s unclear if they’ll be able to make a large return anytime soon. BusinessInsider stated that it would take 15 million users for HBO Max to break even.
With the streaming service market becoming increasingly saturated and competitive, companies are going to have to work hard to bring in new customers.
For example, NBCUniversal released a new streaming service the same year, Peacock.
Peacock, an ad-supported and subscription video on demand-based streaming service, was launched on April 15, 2020, and already boasts 15 million users.
Peacock has three tiers: a free tier that allows users to watch two-thirds of their catalog with ads, a five dollar month tier that allows users to watch their entire catalog with ads, and a 10 dollar month tier that allows users to watch their entire catalog ad-free. While not every user will be paying, NBCU estimates that Peacock’s average revenue per user is going to be six to seven dollars per month.
While Peacock’s launch has been relatively successful, a six to seven dollars ARPU is lower than what the company generates through selling its products to cable networks.
With Comcast expecting to pump 2 billion dollars into Peacock over the next year, they aren’t expecting to break even until 2024.
But what kinds of content can people expect from both streaming services?
As HBO Max is underneath the Warner label. Warner can provide popular franchises like Harry Potter, animated shows from Cartoon Network and Adult Swim, DC movies and shows, and future HBO Max originals.
Some of their high-profile titles include Friends, South Park, and a few Studio Ghibli movies.
Meanwhile, Peacock has more than 20,000 hours of content, although programming has a high turnover rate.
Movies from franchises such as The Matrix and Jurassic Park left the service soon after its launch while other titles display a countdown warning to show how long they’re going to be available on the platform.
Peacock hosts popular shows like Parks and Recreation, 30 Rock, and Law & Order: SVU with more titles set to be released from Comcast’s Universal and DreamWorks Animation Studios.
Peacock is also hoping to feature reboots of Punky Brewster and Saved by the Bell.
Overall, Peacock is more affordable due to its ad-supported service and variety of tiers whereas HBO Max has a wider breadth of quality content that can be worth the higher price for some viewers.