AT&T and Warner Media Leadership Outline Changes Coming to HBO Over the Next Year

by

On June 19, former AT&T executive and new chief executive of Warner Media John Stankey spoke to a group of HBO employees about changes coming to the premium cable company in the near future. The discussion was held in the wake of AT&T's acquisition of Time Warner, which owns HBO, and also included HBO's chief executive officer Richard Plepler.

The telecommunications company previously stated that it would take a "hands-off approach" to running HBO, but The New York Times this weekend reported on Stankey's speech and it sounds like that might not be the case. According to a video of the discussion, Stankey explained Warner Media's intent to align HBO more alongside streaming companies like Netflix in order to increase its subscriber base, although he refrained from referencing Netflix by name.


This means creating more content that releases at a faster pace, in comparison to HBO's current stable of limited Sunday night-focused shows. According to Stankey, the goal is to increase the hours per day viewers watch HBO, which is currently less than rivals like Netflix and Hulu because of HBO's smaller catalog.

“We need hours a day,” Mr. Stankey said, referring to the time viewers spend watching HBO programs. “It’s not hours a week, and it’s not hours a month. We need hours a day. You are competing with devices that sit in people’s hands that capture their attention every 15 minutes.”

Continuing this thread, Stankey specifically stated that more hours of user engagement means that Warner Media can "get more data and information" to monetize through advertisements and new subscription options.

“I want more hours of engagement. Why are more hours of engagement important? Because you get more data and information about a customer that then allows you to do things like monetize through alternate models of advertising as well as subscriptions, which I think is very important to play in tomorrow’s world.”

As the discussion continued, Stankey appeared to have butted heads slightly with Plepler on the topic of HBO's monetization, which Stankey believes can be increased through his new methods. Plepler claimed that the company is already a consistent moneymaker, to which Stankey responded: "Yes, yes you do... Just not enough."

Stankey and Warner Media hope that an increased output of original content will boost HBO's 40 million paid subscribers in the United States, which Stankey said as of now "was not going to cut it." Comparatively, Netflix earlier this year had 55 million U.S. subscribers and Hulu in May had 20 million.

HBO's business currently expands across paid cable add-on packages, the connected HBO GO app, and standalone HBO NOW app. Stankey said that Warner Media's plans will kick off soon and "there's going to be more work" for HBO employees over the next twelve months, which he called a "dog year."

While Apple wasn't mentioned in the discussion, the Cupertino company is another upcoming competitor in the streaming TV market, with plans to debut more than a dozen television shows beginning sometime in 2019. Although the distribution of these shows remains unclear, the company is rumored to be planning a bundle with original TV content, Apple Music, and more.

Top Rated Comments

(View all)
Avatar
26 months ago
This is the point HBO is going to be run by wall street oligarchs. It may as well have been taken over by EA. Sure it will keep going but content will begin to suck consistently. John Oliver will for sure be cancelled. and most importantly AT&T became Delos by saying "I want more hours of engagement. Why are more hours of engagement important? Because you get more data and information about a customer that then allows you to do things like monetize through alternate models of advertising as well as subscriptions, which I think is very important to play in tomorrow's world."
Score: 12 Votes (Like | Disagree)
Avatar
26 months ago
If HBO tries to be a competitor to Netflix, I will evaluate it on the same merits as Netflix, and probably dump it in favor of Netflix. While it remains supplemental to Netflix, it actually has value to me. I doubt AT&T's greed is going to pan out here.
Score: 11 Votes (Like | Disagree)
Avatar
26 months ago
I fear for the quality of content that will end up coming from HBO now. I love the network as it is for the most part. AT&T is probably going mess it all up now. This Stankey guy, based on the quotes in the article sounds like a real jerk to me.
Score: 10 Votes (Like | Disagree)
Avatar
26 months ago
Yeah, this will probably suck. HBO seems like the TV equivalent of "A Thousand No's." There's no way they can become a content farm and not lower their standards. Netflix has a lot of junk and niche content. No one wants a cooking show about Pinterest fails from HBO.
Score: 8 Votes (Like | Disagree)
Avatar
26 months ago
So basically these moron telecom executives with no experience in content are about to ruin HBO.
Score: 7 Votes (Like | Disagree)
Avatar
26 months ago

Lots of people with no experience offering their opinions on something they're in no way qualified to speak on in here. Pretty funny.

Should everyone remain silent on the subject then?
Score: 6 Votes (Like | Disagree)

Top Stories

Apple Officially Obsoletes First MacBook Pro With a Retina Display

Wednesday July 1, 2020 3:40 am PDT by
As expected, Apple's first MacBook Pro with a Retina display is now officially classed as "obsolete" worldwide, just over eight years after its release. In a support document, Apple notes that obsolete products are no longer eligible for hardware service, with "no exceptions." This means that any mid-2012 Retina MacBook Pro 15-inch models still out there that require a battery or other...

New Mac Ransomware Found in Pirated Mac Apps

Tuesday June 30, 2020 11:44 am PDT by
There's a new 'EvilQuest' Mac ransomware variant that's spreading through pirated Mac apps, according to a new report shared today by Malwarebytes. The new ransomware was found in pirated download for the Little Snitch app found on a Russian forum. Right from the point of download, it was clear that something was wrong with the illicit version of Little Snitch, as it had a generic installer...

Unreleased iMac With 10-Core Comet Lake-S Chip and Radeon Pro 5300 GPU Shows Up in Geekbench

Wednesday July 1, 2020 10:48 am PDT by
Benchmarks for an unreleased iMac equipped with a 10th-generation Core i9 Intel Comet Lake-S chip and an AMD Radeon Pro 5300 graphics card have surfaced, giving us an idea of what we can expect from a refreshed 2020 iMac. The Geekbench benchmarks, which appear to be legit, were found on Twitter and shared this morning by Tom's Hardware. The iMac in the benchmarks would be a successor to the...

Leaker: Future iPhone Models to Come in 'Exquisite' Thinner Box

Wednesday July 1, 2020 1:57 am PDT by
Leaker L0vetodream this morning posted a tweet corroborating recent rumors that Apple's "iPhone 12" lineup won't come with EarPods or a charger in the box, adding that this will also eventually apply to the existing second-generation iPhone SE. L0vetodream also claims that future iPhone packaging will be "thinner" and "exquisite," which would make sense if Apple's handsets are set to come in ...

Apple's A12Z Under Rosetta Outperforms Microsoft's Native Arm-Based Surface Pro X

Monday June 29, 2020 10:31 am PDT by
Apple's Developer Transition Kit equipped with an A12Z iPad Pro chip began arriving in the hands of developers this morning to help them get their apps ready for Macs running Apple Silicon, and though forbidden, the first thing some developers did was benchmark the machine. Multiple Geekbench results have indicated that the Developer Transition Kit, which is a Mac mini with an iPad Pro chip, ...

Kuo: iPhone 12 Models Won't Include Charger in Box, 20W Power Adapter Will Be Sold Separately

Sunday June 28, 2020 7:56 am PDT by
iPhone 12 models will not include EarPods or a power adapter in the box, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. This lines up with a prediction shared by analysts at Barclays earlier this week. Kuo said that Apple will instead release a new 20W power adapter as an optional accessory for iPhones and end production of its existing 5W and 18W power adapters...

Rosetta 2 Benchmarks Surface From Mac Mini With A12Z Chip

Monday June 29, 2020 7:48 am PDT by
While the terms and conditions for Apple's new "Developer Transition Kit" forbid developers from running benchmarks on the modified Mac mini with an A12Z chip, it appears that results are beginning to surface anyhow. Image Credit: Radek Pietruszewski Geekbench results uploaded so far suggest that the A12Z-based Mac mini has average single-core and multi-core scores of 811 and 2,781...

Display Analyst Once Again Says No 120Hz ProMotion Display Coming to iPhone 12 Pro

Wednesday July 1, 2020 11:29 am PDT by
Apple's iPhone 12 models will not feature an upgraded 120Hz ProMotion display, according to display analyst Ross Young. Young previously said that Apple would not implement ProMotion technology until it adopted low-power LTPO display technology, a move Apple is not expected to make until 2021. In a tweet shared this morning, Young said that the none of his contacts have been able to...

Apple Seeds Third Betas of iOS and iPadOS 13.6 to Developers [Update: Public Beta Available]

Tuesday June 30, 2020 10:06 am PDT by
Apple today seeded the third betas of upcoming iOS and iPadOS 13.6 updates to developers, three weeks after seeding the second betas and over a month after releasing iOS/iPadOS 13.5 with Exposure Notification API, Face ID updates, Group FaceTime changes, and more. iOS and iPadOS 13.6 can be downloaded from the Apple Developer Center or over the air once the proper developer profile has been...

The New York Times Ends Apple News Partnership and Pulls All Articles

Monday June 29, 2020 11:17 am PDT by
The New York Times today announced that it is pulling out of Apple News, as the service does not "align with its strategy of building direct relationships with paying readers." Starting today, articles from The New York Times will no longer show up in the Apple News app. The news site says that Apple has given it "little in the way of direct relationships with readers" and "little control...