HBO Max's reported figures might deceive viewers
Hey there! Let's dive into the murky waters of HBO Max subscriber numbers. It seems like AT&T, the parent company, is attempting to paint a rosy picture, but it's a tad tricky to get a clear view due to some creative accounting methods.
In their recent Q1 earnings report, they cited an impressive 2.7 million net new domestic subscribers for HBO and HBO Max. However, these numbers aren't exactly straight-forward. As it turns out, "subscribers" in this context refers to both accounts with access to HBO Max (including those not actively using it) and HBO accounts. So, the company is, without a doubt, conflating HBO and HBO Max in these figures.
When asked about their subscriber numbers, AT&T’s spokesperson clarified that free trials aren't counted, but they didn't clarify who these "wholesale" accounts are. These accounts, as they mentioned, are those with access to its streaming service through a distributor, including AT&T's video, broadband, and mobility businesses. On the other hand, "retail" accounts are those billed directly from HBO Max's parent company, WarnerMedia.
This isn't the first time AT&T has been accused of using some sneaky math for their reported subscribers. When they claimed to have reached 37.7 million subscribers in January, they also said that 17.17 million of those were "activated users." When asked about these numbers, they clarified that the 37.7 million subscribers referred to users with access to HBO Max, while the 17.17 million referred to customers actively using the platform.
So, when comparing HBO Max's numbers with rival services like Disney+ or Netflix, it's essential to keep in mind that these larger figures don't tell the whole story. Netflix, for instance, has announced plans to deactivate inactive accounts after a year, while Disney+ is still relatively new, having launched just over a year ago.
It's interesting to note that AT&T chief John Stankey seemed reluctant to elaborate on the details during the earnings discussion. Asked about customer usage, he simply said that they're above their engineered expectations and can't provide further updates on hours of engagement.
In essence, it's rather challenging to gauge HBO Max's success despite their efforts to bolster the service with their 2021 film slate and the upcoming launch of an ad-supported tier in June. The conflation of HBO and HBO Max accounts continues to cast a shadow of uncertainty over the numbers, making it difficult to form a clear picture of the platform's performance.
- The tech industry has seen AT&T's questionable accounting methods when it comes to reporting HBO Max subscriber numbers.
- The future of HBO Max's earnings depends heavily on the company's ability to clarify and separate HBO and HBO Max subscribers accurately.
- To scale HBO Max's performance in the face of competition from services like Disney+ and Netflix, AT&T needs to deactivate inactive accounts and implement a transparent reporting system.
- As the technology continues to evolve, HBO Max must find a way to compete effectively by providing a clearer understanding of its user base and engagement rates, beyond just the numbers.
