AT&T CFO Says WB/HBO Max Release Strategy Has "Worked Out Well For All Involved"

With the early-2021 film schedule in shambles after more studios delay their features into the second half of the year, the controversial deal by WarnerMedia to release its 2021 WB features in theaters and HBO Max simultaneously is starting to look less crazy than it once did. That said, it’s still a scary proposition and a sign that theatrical releases may not ever be the same. But according to the CFO of AT&T (the parent company of WarnerMedia), this strategy has been working pretty well, so far.

Speaking at the virtual Deutsch Bank Media, Internet, and Telecom Conference (via The Wrap), AT&T CFO John Stevens talked about the success he’s witnessed when it comes to WarnerMedia’s controversial decision to release all 2021 Warner Bros. films day-and-date on HBO Max and in theaters. Already, we’ve seen films such as “Wonder Woman 1984,” “Judas and the Black Messiah,” “The Little Things,” and “Tom & Jerry” get this release, with “Godzilla vs. Kong” coming up later this month.

“What we’ve seen is not only good viewership of those movies on HBO Max, but engagement that followed, that’s been encouraging. So real success with it so far,” Stephens said. “We think it’s worked out well for all involved.”

He added, “If you just hold all those for later release, you’re going to be in a position where all the studios have been holding movies, and the flood at the theaters, even if they’re fully open, would change all the economics anyway.”

When the release strategy was announced, there were a lot of people excited about some of the biggest 2021 releases not being delayed and finally being released, even if it was mainly on streaming. That said, there was also a ton of backlash. The pushback came from multiple sides, with some complaining about the filmmakers behind these films seeing their theatrical releases being sent to streaming (which many reportedly weren’t happy about) and others being concerned about what this meant for cinemas, who are desperate to see audiences come back and buy tickets.

So far, it’s really difficult to say how the experiment is going, as HBO Max numbers are being kept secret (unless they’re massive) and box office still suffering from many cinemas remaining closed and others using reduced capacities. This means, it’s still unclear how this strategy might continue into the future. And Stephens isn’t saying anything about it, either, except that it’s still being looked at as a one-year deal.

“We’re still just a few, three or four months, into this process,” the executive explained. “And so we’re still learning from it, we’re still gathering data. We’re still uncertain as to when the economy is going to be fully open. So I wouldn’t suggest anything other than what we’ve announced: That this was a one-year effort. But we’ll be we’ll be very thoughtful.”

As mentioned, “Godzilla vs. Kong” is the next big HBO Max/Theatrical release for WarnerMedia, and that film arrives on March 25.