Competition in the streaming industry is fierce, leading companies to prioritize subscriber retention and satisfaction. A recent survey revealed that Discovery of Warner Bros.it is (WBD -3.65%) streamer, HBO Max, has the highest customer satisfaction of any streaming service. Here’s why.
HBO Max was launched in the United States in May 2020. Although the platform was initially managed by its former parent company, AT&T, WarnerMedia’s merger with Discovery transferred ownership to the newly formed company. The platform has become a serious rival for netflix (NFLX -1.21%) and waltz disneyit is (SAY -1.61%) Disney+ in just two years. HBO and HBO Max had a combined total of 76.8 million subscribers worldwide in the first quarter of 2022.
A report released in June compared overall user satisfaction across the nine largest streaming platforms. HBO Max, Disney+, Hulu, and Netflix ranked highest, suggesting these services had the highest perceived value and content. HBO Max led the way in subscriber satisfaction with 92% of participants very satisfied with the platform, an increase of 2% from 2021.
Among the top four streaming services on the list, HBO Max was the only platform to increase user satisfaction in 2022, while Disney+ remained the same and Netflix rose from 90% in 2021 to 80% in 2022 Netflix also fell from the second best user satisfaction in 2021 to the fourth in 2022.
When looking at HBO Max’s offerings compared to its competitors, the service offers more value than its biggest rival Netflix. It offers members the choice of two monthly tiers: with ads for $9.99 or without ads for $14.99. Both tiers have 4K streaming as standard and allow up to three simultaneous streams.
By comparison, Netflix’s current ad-free tiers cost $9.99 for one stream at 480p resolution, $15.49 for two streams at 1080p resolution, or $19.99 for four streams at 4K video quality.
In addition to fair pricing, HBO Max offers members a slew of legacy titles from HBO’s premium library and blockbuster releases, such as the latest DC movies. Its two subscription levels provide access to the 10 entertainment centers of Warner Bros. Discovery, including DC, Classics Curated by TCM, Studio Ghibli, Cartoon Network, Sesame Workshop, Crunchyroll, Adult Swim, Cartoonito and Looney Tunes.
When asked about the quality and variety of satisfying HBO Max content, the platform won out over all of its competitors. Figures show that around 90% of consumers are happy with the streamer’s original series, around 85% with its library series, and over 86% with its movies. Disney+ came in just behind HBO Max, but Netflix was just over 75% with its original series, while its series library and movies hovered around 70%.
Additionally, HBO Max pulled a page out of Disney’s book by enticing viewers with originals based on popular franchises. The original series Peacemakera DC spin-off The Suicide Squadset the HBO Max record for best one-day performance with its finale on February 17 – achieving a 44% increase in viewing from the premiere.
Meanwhile, HBO Max’s library only seems to get better with the merger of WarnerMedia and Discovery. Rumors have swirled that HBO Max may be gearing up to absorb Discovery+ after European content changes. The move would add a slew of popular reality TV titles such as Property Brothers, Chopped, Star pawns, and more. Discovery+ also doesn’t offer annual subscriptions, making it easier to merge the platform with HBO Max.
To look forward
HBO Max’s biggest hurdle in the near future is the launch of ad-supported levels by Netflix and Disney+. The service will need to be prepared to adjust its service accordingly, depending on how new subscriptions look.
Recent data revealed that subscribers are currently more likely to leave Netflix within the first month than any other platform. Compared to the data above, Netflix has an uphill battle to climb before consumers see it as a good buy and subscriber growth turns around.
HBO Max and Disney+ offer such contrasting content, it stands to reason that the two might be more friendly to co-exist in the marketplace than with other services. HBO Max can take the reins of quality dramas such as game of thrones and its immensely popular Euphoriawhile Disney+ entertains families with a library of nostalgic PG titles and action brands like Marvel and star wars.
HBO Max has carved out a place near the top in an incredibly competitive industry in just two years. It will remain a strong contender if it can continue to deliver quality content and value.
Dani Cook has no position in the stocks mentioned. The Motley Fool holds positions and recommends Netflix and Walt Disney. The Motley Fool recommends Warner Bros. Discovery, Inc. and recommends the following options: January 2024 Long Calls at $145 on Walt Disney and January 2024 Short Calls at $155 on Walt Disney. The Motley Fool has a disclosure policy.