The town is mad about the studio’s decision to put movies on HBO Max and in theaters at the same time. But with a telecom giant running an entertainment company, things were bound to get weird.
Even a small sample of the Warner Bros.2021 film slate suggests the studio’s big-screen ambitions: A desert-planet messiah who can kill with a word (“Dune”); a colossal clash between mutant monsters (“Godzilla vs. Kong”); a local hero who whips up frenzied dance routines across uptown rooftops (“In the Heights”). They’re the kind of movies that families, couples and teenagers once watched on three-story screens from the comfort of stadium-style seats, with the soundtrack’s bass notes rumbling at their feet. But last week Warner Bros. broke with tradition by announcing that it would release its entire lineup of 2021 films on HBO Max — its struggling streaming service — on the same day they were scheduled to appear in theaters. Hollywood agents and filmmakers were angered by the move — but they may have forgotten something crucial: Warner Bros. belongs to WarnerMedia, which is part of AT&T. And AT&T is a telecommunications company whose interests are sometimes at odds with those of the old entertainment business. Despite joining Hollywood in a big way last year, when it bought Time Warner for more than $80 billion, AT&T may not mind so much if it speeds the demise of the century-old moviegoing habit. For AT&T, HBO Max isn’t just a convenient way to get films and television shows to the public. Instead, the platform is a key part of its wireless business. HBO Max is included in packages for some high-end phone and internet subscribers, and it exists, in part, to create consumer loyalty to AT&T. The Warner Bros. films will also play in theaters — but seeing them that way would cost a family of four about $50 (excluding gas, parking and concessions). That makes the monthly $15 fee for HBO Max a steal. Or even a no-brainer. Especially at a time of dread caused by being part of a crowd during the coronavirus pandemic. The studio’s emphasis on streaming certainly puts AT&T at risk of losing money on its 2021 films. But the box office has already been hollowed out, because of the pandemic, with every major studio stutter-stepping its way into various release strategies. Jason Kilar, the WarnerMedia chief executive who helped craft the strategy, could have settled on a more patient distribution scheme, given that coronavirus vaccines might salvage some of the 2021 box office. Instead, he did something audacious by potentially sacrificing billions in box office receipts to boost the $15-a-month streaming platform. Mr. Kilar was early to streaming, starting his run as the chief executive of Hulu in 2007. For those who knew him then, his moves at WarnerMedia have not been much of a surprise.
