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In a win for AT & T’s WarnerMedia, HBO will no longer be available as an Amazon channel after their current placement contract expires next year, according to people familiar with the matter.
Today, HBO’s presence in the Amazon Channels store allows users to watch regular HBO programming in the Amazon Fire TV user interface, making it easy for consumers to subscribe and sign up. But that placement has been a major sticking point in negotiations to get HBO Max, the company’s separate streaming service, on the Amazon Fire TV platform, according to people, who asked not to be named because the terms of the agreement are private.
Those talks dragged on for months before concluding this week with a deal.
HBO Max includes additional content that is not available on HBO, such as “South Park and“ The Big Bang Theory. ”Over time, WarnerMedia would like the HBO Max app to be the only point of entry into services. HBO on streaming platforms.
While this UI distinction may seem esoteric to most consumers, it means a lot to WarnerMedia. Keeping subscribers in the HBO Max app allows WarnerMedia to have a direct relationship with consumers and gain viewer information that can be used for targeted advertising. An advertising version of HBO Max is expected to launch next year.
Consumers who have purchased HBO through Amazon Channels will be able to connect to HBO Max at no additional cost through the HBO Max app. The HBO legacy will remain in the Channels store until its deal – which is separate from the HBO Max deal – expires next year.
Still, keeping HBO and HBO Max out of the Amazon Channels store could hurt subscriber growth.
Once the deal is done with Amazon, WarnerMedia will focus on getting a deal with Roku, the largest streaming video platform by market share, the people said. Roku also has a channel business, which HBO Max is fighting to avoid. WarnerMedia will also need to make an ad revenue sharing deal with Roku, similar to NBCUniversal’s Peacock, which struck a deal with Roku in September.
Spokesmen for WarnerMedia and Amazon declined to comment.
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