(Reuters) – AT&T Inc. said Friday it expects up to 150 million global subscribers for its HBO Max and HBO video services, and $ 15 billion in revenue for businesses by the end of 2025, as more people resort to cheaper transmission services for entertainment.
AT&T shares rose 2% to $ 30.16 in the morning trading.
The US wireless provider has invested heavily in breaking into the streaming video market dominated by Netflix Inc and Walt Disney Co.’s Disney +.
WarnerMedia CEO Jason Kilar said Friday during a virtual investor presentation that he believes HBO Max is already the No. 2 revenue-generating independent video service in the United States.
The company said it expects average revenue per user of $ 14 per user for HBO Max in the United States in 2025, up from $ 12 this year.
Netflix, the world’s largest streaming service, posted revenue of $ 6.64 million in its fourth quarter.
HBO Max, which was released in May, includes 10,000 hours of content from brands and libraries such as Warner Bros., New Line Cinema and Cartoon Network.
This year’s new films, such as the upcoming “Godzilla vs. Kong ”, will be released on HBO Max at the same time as they are released in theaters, whose business has been affected by the pandemic.
“We have worked tirelessly for the right to partner with the best talent in the world,” Kilar said. “Consumers use and love HBO Max.”
A lower-priced, advertising-compatible version of HBO Max will be released in the United States in June, but will not include new movie releases, according to Kilar.
HBO Max will also expand internationally to 60 markets, including Latin America and Europe, the company said.
Report by Eva Mathews and Munsif Vengattil in Bengaluru and Sheila Dang in Dallas; Edited by Krishna Chandra Eluri, Devika Syamnath, Jonathan Oatis and David Gregorio