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WarnerMedia signs HBO Max distribution deal with Charter

AT&T Inc. unit Warner Media LLC struck a multiyear distribution deal with Charter Communications Inc.

WarnerMedia's upcoming streaming service HBO Max will become available to Charter customers when it launches in May, the company said April 15.

The deal will allow all of Charter's current HBO subscribers to automatically access HBO Max without additional costs. Meanwhile, new customers can purchase HBO Max directly from Charter.

The deal with the nation’s second-largest cable operator marks the second pact WarnerMedia has secured with an outside distributor to boost the subscriber base for HBO Max. The streaming offering will not only feature fare from the premium network but content from Turner Broadcasting System Inc.'s portfolio of cable networks and Warner Bros. Entertainment Inc.'s various TV and theatrical libraries.

HBO Max is also creating its own batch of original series targeted to different members of the household.

In February, Warner and Google LLC's YouTube TV expanded their partnership to include HBO Max upon its launch.

AT&T COO John Stankey has said offering HBO Max would enable affiliates to keep customers engaged on their platforms and that they could also benefit from consumer insights gleaned from the telco’s Xandr ad unit. HBO Max, he said, can also be offered by distributors interested in attaching it to their broadband products and selling it as a stand-alone, or they could offer the streaming service on a wholesale basis and participate in the recurring revenue stream.

AT&T customers who subscribe to premium video, mobile and broadband packages will be offered bundles with HBO Max included at no extra charge. The HBO Max app is also being pre-loaded on both AT&T TV connected set-top boxes and Android phones.

Streaming services, including Netflix Inc. and Disney's Disney+, which have distribution deals with T-Mobile and Verizon, respectively, have used promotional pacts to lift their subscriber expansion.

HBO Max and a few other new players in the streaming space are changing the dynamics of the sector, which like other industries, has been impacted by the COVID-19 pandemic, according to speakers in the latest episode of "MediaTalk," an S&P Global Market Intelligence podcast.