Hbo Max Plan Domestic Hbo Subscribers 50M 47M 44M 41M 38M 34M 36M
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WELCOME JOHN STANKEY PRESIDENT & CHIEF OPERATING OFFICER AT&T CHIEF EXECUTIVE OFFICER WARNERMEDIA BOB GREENBLATT CONTENT CHAIRMAN WARNERMEDIA ENTERTAINMENT & DIRECT-TO-CONSUMER TECHNOLOGY PLATFORM MARKETING & DISTRIBUTION ROBERT GREENBLATT CONTENT CHAIRMAN WARNERMEDIA ENTERTAINMENT & DIRECT-TO-CONSUMER ANDY FORSSELL TECHNOLOGY PLATFORM EXECUTIVE VICE PRESIDENT & GENERAL MANAGER WARNERMEDIA DIRECT-TO-CONSUMER MARKETING & DISTRIBUTION CONTENT ANDY FORSSELL TECHNOLOGY PLATFORM EXECUTIVE VICE PRESIDENT & GENERAL MANAGER WARNERMEDIA DIRECT-TO-CONSUMER TONY GONCALVES MARKETING & CHIEF EXECUTIVE OFFICER OTTER MEDIA DISTRIBUTION JOHN STEPHENS CHIEF FINANCIAL OFFICER & CONTENT SENIOR EXECUTIVE VICE PRESIDENT AT&T TECHNOLOGY PLATFORM RANDALL STEPHENSON TONY GONCALVES MARKETING & CHAIRMAN OF THE BOARD & CHIEF CHIEF EXECUTIVE OFFICER EXECUTIVE OFFICER OTTER MEDIA AT&T DISTRIBUTION JOHN STEPHENS CHIEF FINANCIAL OFFICER & SENIOR EXECUTIVE VICE PRESIDENT AT&T RANDALL STEPHENSON CHAIRMAN OF THE BOARD & CHIEF EXECUTIVE OFFICER AT&T COMMUNICATIONS PERSONAL DAILY VIDEO CONSUMPTION 5.9 5.5 HOURS 5.4 HOURS HOURS OTT vMVPD Traditional TV 2015 2020 2024 BASIS 1 POINT = $100M INSIGHTS CONTENT SUBSCRIBER CUSTOMER ENGAGEMENT EXPERIENCE 2020 2021 FUTURE SVOD SVOD, AVOD + LIVE, INTERACTIVE & + SPECIAL EVENTS LIVE LIVE INITIAL BUNDLE ADVERTISING EXPANSION PLATFORM INTEGRATION 10M SUBSCRIBERS 10M SUBSCRIBERS 3.2B 170M INTERACTIONS DIRECT CUSTOMER ANNUALLY RELATIONSHIPS 50M SUBSCRIBERS DOMESTICALLY BY 2025 LATINCLEAR OPPORTUNITY AMERICA FOR HBO MAX - LARGE ADDRESSABLE MARKET - ESTABLISHED HBO PREMIUM SUBSCRIBER BASE - SUBSTANTIAL FOOTPRINT WITH VRIO AND AT&T MOBILITY LATIN AMERICA CLEAR OPPORTUNITY FOR HBO MAX - LARGE ADDRESSABLE MARKET INVESTEUROPE- ESTABLISHED IN OTT HBO EXPANSION; PREMIUM LICENSESUBSCRIBER SELECTIVELY BASE - SUBSTANTIAL FOOTPRINT WITH VRIO - EXPAND IN EXISTING HBO OTT AND AT&T MOBILITY AND LINEAR TERRITORIES - INCREASE IN CONTENT WITH LICENSING PARTNERSHIPS EUROPE INVEST IN OTT EXPANSION; LICENSE SELECTIVELY - EXPAND IN EXISTING HBO OTT AND LINEAR TERRITORIES - INCREASE75-90M IN CONTENT WITH LICENSINGPREMIUM PARTNERSHIPS WORLDWIDE SUBSCRIBERS BY 2025 75-90M PREMIUM WORLDWIDE SUBSCRIBERS BY 2025 CUSTOMER ENGAGEMENT MEASURING AVERAGE REVENUE PER USER SUCCESS PROGRAMMING COST EFFICIENCY ROBERT GREENBLATT CHAIRMAN WARNERMEDIA ENTERTAINMENT & DIRECT-TO-CONSUMER MAY 2020 ENTIRE HBO SERVICE & LIBRARY LARGE OFFERING OF NEW ORIGINAL CONTENT CHOICE SLATE OF ACQUIRED AND LIBRARY PROGRAMMING 108 25 632 GOLDEN OSCARS EMMY GLOBES AWARDS QUALITY CURATION I find the letters more valuable than they “ were ten years ago. Virtually everything they make is good, and, for me personally, I’m finding that more valuable than ever to figure out how to navigate through all the choices I have at any given moment. John Landgraf Chairman ” FX Networks and FX Productions 10,000 HOURS OF CONTENT PERSONALIZATION CASEY BLOYS KEVIN REILLY SARAH AUBREY MICHAEL QUIGLEY ANN SARNOFF TONY GONCALVES ANDY FORSSELL FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS FEMALE MALE 20 40 60 AGE TARGET DEMOGRAPHICS CASEY BLOYS PRESIDENT OF PROGRAMMING HBO 34 EMMY AWARDS 59 EMMY AWARDS has reigned over television for a quarter-century now; “ no other institution is more central to our concept of prestige TV, elevating it to the American storytelling medium of the young century. ” KEVIN REILLY CHIEF CONTENT OFFICER HBO MAX PRESIDENT TBS, TNT & TRUTV HANDFUL OF TITLES DRIVE SIGNIFICANT USAGE 7% 6% TOP 100 SHOWS 5% NETFLIX AMAZON 4% 3% 2% 1% 0% SHOWS SOURCE: HARRISX, MOFFETTNATHANSON ESTIMATES AND ANALYSIS MORE THAN 100 = 50% TOP TITLES PLATFORM USAGE QUALITY OVER QUANTITY TOP 80% TEN = OF COMEDY COMEDIES CONSUMPTION KIDS & FAMILY YOUNG ADULT ADULT 2020 2021 31 50 38 TOTAL: 6988ORIGINAL SERIES 2020 2021 5031 3838 TOTAL: 8869ORIGINAL SERIES SARAH AUBREY MICHAEL QUIGLEY HEAD OF ORIGINAL CONTENT EXECUTIVE VICE PRESIDENT HBO MAX CONTENT ACQUISITIONS & STRATEGY WARNERMEDIA ENTERTAINMENT & DIRECT-TO-CONSUMER KIDS & FAMILY MILLENNIAL & GEN Z ADULT KIDS & FAMILY PROGRAMMING MILLENNIAL & GEN Z PROGRAMMING 5 OF THE TOP 10 ADULT PROGRAMMING ANN SARNOFF CHAIR & CHIEF EXECUTIVE OFFICER WARNER BROS. GROSSED $4B GLOBALLY 9x RANKED #1 OR #2 IN WORLDWIDE BOX OFFICE MORE THAN GROSSED $4B GLOBALLY 9x RANKED #1 OR #2 IN WORLDWIDE BOX OFFICE CRITERION COLLECTION IN WORLDWIDE BOX OFFICE TONY GONCALVES CHIEF EXECUTIVE OFFICER OTTER MEDIA 5M CONCURRENT USERS ACROSS 22 DEVICES 4B LIVE STREAM MINUTES ANDY FORSSELL EXECUTIVE VICE PRESIDENT & GENERAL MANAGER WARNERMEDIA DIRECT-TO-CONSUMER 2007 2008 2012 2015 2017 2010 2014 2015 2018 AVERAGE USER SPENDS 9 20% MINUTES SEARCHING GIVE UP FOR CONTENT HUMAN-POWERED DISCOVERY PRODUCT DEMO [AVAILABLE ON ARCHIVED VIDEO] 600 SOCIAL CAMPAIGNS 2B 9B 6B FANS & VIDEO SOCIAL FOLLOWERS VIEWS ENGAGEMENTS AMPLIFY ACQUIRE RETAIN ENGAGE $14.99 170M 5,500 3.2B DIRECT-TO-CONSUMER RETAIL CONSUMER RELATIONSHIPS LOCATIONS INTERACTIONS JOHN STEPHENS CHIEF FINANCIAL OFFICER & SENIOR EXECUTIVE VICE PRESIDENT AT&T HBO MAX PLAN DOMESTIC HBO SUBSCRIBERS 50M 47M 44M 41M 38M 34M 36M 2019 2020 2021 2022 2023 2024 2025 Incremental DTC Subscribers Existing HBO Subscriber Base Note: The subscriber metrics above are U.S. estimates, and do not include any international estimates. HBO MAX PLAN INCREMENTAL HBO MAX DOMESTIC REVENUE $5B $4B $3B $2B $1B $0B $0.1B 2019 2020 2021 2022 2023 2024 2025 Other Subscription Note: The revenue figures above are U.S. estimates, and do not include any international estimates. HBO MAX PLAN INCREMENTAL HBO MAX DOMESTIC EXPENSE $4B $4B $3.5B $3B $2.5B $2B $0.1B 2019 2020 2021 2022 2023 2024 2025 Customer Acquisition Programming Note: The expense figures above are U.S. estimates, and do not include any international estimates. HBO MAX PLAN INCREMENTAL HBO MAX DOMESTIC NET INVESTMENT $1B ($0.1B) ($0.2B) ($0.5B) ($1B) ($1B) ($2B) 2019 2020 2021 2022 2023 2024 2025 Note: Totals may not foot due to rounding. The net investment figures above are U.S. estimates, and do not include any international estimates. HBO MAX PLAN DOMESTIC HBO SUBSCRIBERS INCREMENTAL HBO MAX DOMESTIC REVENUE 47M 50M $5B 41M 44M 36M 38M $4B 34M $3B $2B $1B $0B $0.1B 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 Other Subscription Incremental DTC Subscribers Existing HBO Subscriber Base Note: The subscriber metrics above are U.S. estimates, and do not include any international estimates. Note: The revenue figures above are U.S. estimates, and do not include any international estimates. INCREMENTAL HBO MAX DOMESTIC EXPENSE INCREMENTAL HBO MAX DOMESTIC NET INVESTMENT $1B $3.5B $4B $4B $3B $3B $0 ($0.1B) ($0.2B) $2B ($0.5B) ($1B) ($1B) $0.1B ($2B) 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 Customer Acquisition Programming Note: The expense figures above are U.S. estimates, and do not include any international estimates. Note: Totals may not foot due to rounding. The net investment figures above are U.S. estimates, and do not include any international estimates. RANDALL STEPHENSON CHAIRMAN OF THE BOARD & CHIEF EXECUTIVE OFFICER AT&T THANK YOU FOR JOINING US THE PROGRAM HAS CONCLUDED.