Ad-supported HBO Max launches
After a year in market, HBO Max has launched a lower-priced, ad-supported version at $9.99/month, $5 less than the ad-free version. The service is mostly similar to the ad-free version with a just a few differences. The ad-supported HBO Max will not have the theatrical releases available the same day as is the case with the ad-free HBO Max. Additionally, viewing will be capped at 1080p resolution and viewers will not have the capability to download content for offline viewing. Aside from that, the company promises to have the lightest ad-load of any other ad-supported service in the marketplace with a maximum of four minutes of commercials per hour, except on HBO programming which will not have ads.
The NPD Take:
- The launch of the cheaper ad-supported version of HBO Max should help the service attract new subscribers who were initially leery of the higher price tag for the ad-free version and potentially keep the streaming service as part of the regular bundle they subscribe to.
- As competition for consumers’ share of streaming wallet continues, it is likely that we will see more services offering tiered plans to bring different types of consumers into the fold while also benefitting from increased advertising revenues to help offset the acquisition and production costs.
Apple TV lands on Android devices
Apple TV is now available on Android TV operated devices. This is in addition to availability on Google-enabled operating systems and other non-Apple devices, such as Roku and Fire TV devices. The timing of the expansion also aligns with the pending expiration of many Apple TV+ free trials ending on July 1. The roll-out only affects Android TV OS devices and does not include third-party set-top boxes using Android technology.
The NPD Take:
- This isn’t the first time Apple TV has partnered with Android to expand access to its programming. In order to attract and retain subscribers, Apple TV needs to be available on more devices outside of the tvOS system.
- Expanding access is one piece of the equation for Apple TV+’s potential. Increasing the content library on Apple TV+ is also important if the service hopes to attract and retain subscribers, particularly as free trials expire.
Paramount+ rolls out cheaper ad-supported plan
ViacomCBS is releasing a cheaper ad-supported version of Paramount+ at $4.99/month on June 7. The new plan will replace the current “Limited Commercials” plan at $5.99/month, which was essentially the former CBS All Access ad-supported plan. Dubbed the “Essential Plan”, the new version will maintain most of the programming elements of the ad-free version including “NFL on CBS” and Champions League Soccer matches but will lose the local CBS news programming. The new pricing will be $1 less than Hulu with ads and on par with Discovery+ ad-supported plan.
The NPD Take:
- The majority of Paramount+ subscribers have an ad-supported plan. ViacomCBS hopes that by dropping the monthly price below the psychological threshold of $5/month it will be able to attract more subscribers.
- Ad-supported plans can be a key competitive advantage to help new subscription services acquire new subscribers. The low price point lowers the barrier to entry and trial while providing an additional revenue stream via commercials to offset the lower monthly subscription price.