In other words, the wireless wars may be coming smack in the middle of the streaming war. Hodulik acknowledged that, as AT&T hopes will happen, bundling new phones with HBO Max may give it an edge.
AT&T announced yesterday that investment in HBO Max last quarter in the form of foregone content licensing deals – to get WB shows likeon the service – shaved $1.2 billion off consolidated revenue. Anticipated investment of $2 billion in HBO Max in 2020 will continue to weigh on financials, Hodulik said.
AT&T also faces secular pressure in its entertainment unit and the rest of WarnerMedia. AT&T, along with the rest of the pay TV world, continues to shed video subscribers. The giant telco will loose another 2.8 billion of them this year, Hodulik estimates.
Lose not loose