Why HBO Max Might Actually Have the Goods to Take on Netflix and Disney+

WarnerMedia announced today that its upcoming original streaming service would be called HBO Max and that Friends would be an exclusive offering. In a way, this news wasn’t particularly surprising. After all, reporters have known since January that WarnerMedia wanted to wrangle its “crown jewels” away from rival streaming platforms for their new service. We’ve also known that HBO was seen as the lynchpin of this new platform.

However, we didn’t know until today for sure if WarnerMedia could put their money where their executives’ mouths were — and now we do. The revelation that HBO Max will feature not only massive native hits like Game of Thrones, but coveted library titles such as Friends, The Fresh Prince of Bel Air, Cartoon Network originals, the CW’s trendy hits, and the original Lord of the Rings films puts the service right where it wants to be. That is, in the thick of the impending streaming wars.

In the next 12 months, the landscape of streaming is going to be upended by the launch of at least three, if not four, major new streaming services. Disney+ looks to be the most well-positioned service to strike at Netflix’s audience. Disney seems to have a veritable monopoly on must-see blockbusters and well-loved franchises. Plus, they’re launching with a lower-than-expected price point, making subscriptions look worth the deal. Elsewhere, Apple TV+ has generated a lot of hype. The tech giant hosted a star-studded event in the spring touting the Hollywood heavyweights they’ve enlisted to create original content for service. However, Apple’s secrecy around the service’s originals as well as its price point don’t engender confidence (though they certainly have the tech to create a crackerjack user experience).

Since many are skeptical that consumers are going to want to opt into yet another streaming service — period — WarnerMedia’s streaming service has been considered something of an afterthought. Today’s announcement gives it a little bit of bite, though. Beyond snatching Friends from Netflix, WarnerMedia has also confirmed that a slew of major titles will be a part of its service’s library. Furthermore, the name. Yes, HBO Max conjures up Pepsi Max jokes (or even jibes about sanitary napkins). However, the HBO brand is one recognized by consumers. Hanging the service on the HBO’s strength is not a bad idea. Also for people concerned that the HBO Max name might be confusing? Customers have managed to navigate the difference between HBO Go and HBO Now for a few years now. If anything, HBO Max’s offerings might engender HBO Now customers with a form of streaming FOMO.

HBOMax’s success will come down to price (which we don’t yet know), user experience (which we’ll have to wait for launch to see), and consumer loyalty to WarnerMedia brands. While Disney and Netflix mean something in the mind of the consumer, WarnerMedia is fractured across a portfolio of popular networks and studios. Once people realize the depth of this catalogue, they may actually be swayed. After all, WarnerMedia is the home to Friends and Game of Thrones, Powerpuff Girls and Yuri on Ice, Wonder Woman and The Wizard of Oz, and maybe most crucially, CNN.

CNN’s place in HBO Max’s library hasn’t been given much thought, aside from Kevin Reilly’s Winter 2019 TCA shoutout to Anthony Bourdain’s many original documentaries. However, if HBO Max launches with a live streaming CNN option, it would give the streaming service a unique edge. CBS All Access is the only other major streaming service with its own native live streaming news feed, CBSN, but it lacks the prestige of CNN as a global news brand. HBO Max is also set to launch in early 2020, an election year. That’s the time when cable news junkies obsess the most.

So HBO Max has the library of content to appeal to consumers, but it’s going to have to stick the landing on price and on user experience. That’s what this gamble really comes down to now. Can WarnerMedia convince HBO subscribers to pay more than what they’re already shelling out: a steep $14.99/month? And can they build a user-friendly interface that outdoes the tech gurus at Apple? Otherwise Friends and Game of Thrones fans are going to revert to buying their favorite shows on DVD.