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.

HBO GO iphone x
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

iLilana Avatar
31 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)
redscull Avatar
31 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)
SandboxGeneral Avatar
31 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)
MhzDoesMatter Avatar
31 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)
mrow Avatar
31 months ago
So basically these moron telecom executives with no experience in content are about to ruin HBO.
Score: 7 Votes (Like | Disagree)
SandboxGeneral Avatar
31 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

windows 10

Developer Successfully Virtualizes Windows for Arm on M1 Mac

Friday November 27, 2020 7:16 am PST by
Developer Alexander Graf has successfully virtualized the Arm version of Windows on an M1 Mac, proving that the M1 chip is capable of running Microsoft's operating system (via The 8-Bit). Currently, Macs with the M1 chip do not support Windows and there is no Boot Camp feature as there is on Intel Macs, but support for Windows is a feature that many users would like to see. Using the...
iPhone black friday 20 sale feature

Apple Black Friday 2020: Best iPhone Deals

Friday November 27, 2020 12:56 pm PST by
Black Friday is halfway done, but there are still a few deals to shop for on iPhones at carriers like AT&T, Verizon, and T-Mobile/Sprint. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. AT&T Starting with AT&T, you'll find up to $700 off any iPhone 12 when...
AirPods Pro black friday 20 sale feature 2

Black Friday 2020: AirPods Pro Reach Lowest Price Ever [Updated]

Wednesday November 25, 2020 3:22 pm PST by
Black Friday has kicked off this week, and one of the first major sales for the AirPods Pro is available right now on Walmart. You can find this deal below, along with a few other solid discounts on the regular AirPods. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site...
Apple Watc black friday 20 sale feature

Apple Black Friday 2020: Best Apple Watch Deals [Updated]

Wednesday November 25, 2020 4:01 pm PST by
Black Friday sales have begun on a variety of products, including the Apple Watch. There are quite a few deals across the Apple Watch lineup this year, including one of the lowest price we've ever seen the Apple Watch Series 3. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the...
iphone trade in store

UK Environmental Committee Says Apple Contributing to 'Throwaway Culture' of 'Short-Lived Products'

Thursday November 26, 2020 7:07 am PST by
Technology companies like Apple are contributing to e-waste by making their products difficult to repair, and charging expensive repair fees, according to a lengthy report published today by the UK Parliament's Environmental Audit Committee. "We were told that Apple glues and solders parts together on their laptops, which makes repairing them very difficult," the Committee wrote in a summary ...
MacBooks black friday

Apple Black Friday 2020: Best Mac and MacBook Deals

Thursday November 26, 2020 8:29 pm PST by
For Black Friday 2020, many retailers have solid deals on a variety of Macs. Apple's new M1 Macs are ones everyone wants right now, but because they're so new, deals on them are fairly sparse, although we are seeing some modest discounts. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps...
Top Stories 38 Feature

Top Stories: Black Friday Deals, Redesigned MacBooks, Hands-On With Apple's M1 Macs

Saturday November 28, 2020 6:00 am PST by
With Apple's holiday hardware lineup seemingly all set, attention this week turned to the shopping end of things with Apple and other retailers rolling out their Black Friday deals. That wasn't the only news this week, however, as we've continued to learn more about Apple's new M1-based Macs and we've even heard some fresh rumors about redesigned Mac notebooks coming next year, so read on...
General black friday 20 sale feature 2

Apple Black Friday 2020: Our Top Picks

Friday November 27, 2020 6:16 am PST by
Black Friday shopping has officially kicked off across the United States, and we've been collecting the best deals for Apple's iPads, Macs, AirPods, the HomePod, Apple Watch, and more in separate articles. In order to further streamline your Black Friday shopping this year, we've put together this quick list of our top picks of the overall best Apple-related bargains happening today. Note:...
mac mini macbook pro macbook air

Apple M1 Hands-On Comparison: MacBook Air vs. MacBook Pro vs. Mac Mini

Monday November 23, 2020 3:40 pm PST by
Apple's M1 Macs are out in the wild now, but ahead of the holidays, you might still be trying to figure out which one to pick up, either for yourself or as a gift for someone else. We've got all three of the new Macs available, so we thought we'd give MacRumors readers a hands-on overview of each machine in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. ...
General black friday 20 sale feature

Thanksgiving Day Deals Still Available on AirPods, M1 Macs, Apple Watch Series 6, iPads

Thursday November 26, 2020 10:21 am PST by
Black Friday deals seem to start earlier and earlier every year, so there were already a wide variety of discounts available for Apple products on Thanksgiving Day. Many of the deals remain available even after Thanksgiving, but act fast, as inventory quickly fluctuates. Thanksgiving Day Deals on Apple Products — Still Available:AirPods with a wireless charging case remain available for...