AT&T CEO John Stankey on the launch of the HBO Max streaming service

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Joe Kernan. Kicking things off with John. Thank you this morning on Squawk box. John Thanks for coming on today. It's great great to have you with us you me on. I know you have high hopes for. Hbo We all know HBO. Obviously it's synonymous with some of the greatest things ever on video. Obviously game of Thrones Sopranos etc. You WanNa take on Netflix. And I understand. I think that's interesting because I don't know whether it's true or not. But supposedly someone said maybe we should have some kind of alliance with Netflix's someone suggested that you and you said we want to crush Netflix's Adams John you want to replace net flicks or at least be a very potent competitor refrains US Navy. Some on what I would call not accurate reporting on the New York Times Are hellacious is going to multiple streaming services knowing forward in pretty consistent. I think if you look back over the last year of domain around my conversation that our goal frankly is not to be. Netflix's our goal is to be something different and there are other senior services are starting to show up on the market that clearly different ease for the customer. Hbo Mass is going to have a unique focus in a unique position with the customer in play our game. Our goal is at crush flights. Our goal is to make sure that we meet customer needs engaged every day household. Find something worthwhile in time with us. And that's what we're GONNA see foes I guess they didn't so that was in the New York Times but that was that was not accurate according to so that. That's not a quote from you that that's interesting Anyway but I I guess the reason I led with that John is that I think about net flicks and everything. That's there and from documentaries to movies to programming that they generate themselves. That is a big universe of things that they have how will HBO? Max and I just said you're not going to strive to be everything to all people but you probably do need to add some things to the offering to make it so attractive that people have it in addition to the other streaming services absolutely a clearly customer Nanna. What's current as from kind of traditional media through the pay TV bundle and general entertainment content coming into the streaming world has credible number of choices of what to do with their time and then he going all dynamics in the digital environment about France capabilities to good use generating content? Like there's no question. There's more choice after today than there ever has been in paradise choices. Feel Max Niece resolve needs on the customers. Says you know I'm looking for something? That is this particular need of where I stand right now at my mood or my family situation that it's the first thing you think about that. I can go and no one wanted to find something. That's curious down. Who in meaningful selection of high-quality is Gonna? Hit the mark for me in the consistency. That happening time and time again clearly. The a hallmark more for the bran and for the service. And that's what we believe where you will focus on a more carried. Orderly got such a talented team. It warned me be do dat curate in that fashion just doing it for the demo outstanding the entire family. And you point out that that it's it's not much difference in price from what people are paying for now with with. Hbo So you have done some surveys. And what you saw one out of five people might decide not not to go with with Max. But it's not not much of a difference between just converting what they have now into HBO. Max Oh you don't you. Don't see any churn in that respect a difference were selling at that price day with just the HBO product which is a product that has half as much content is what HBO. Max New Offering Margaret. So you twice content same price and I think if we're seeing all of us everybody who's in the streaming business utility matter fact increasing during these unfortunate moments going through right now at this pandemic that's increasing dramatically so the performance of house value arrive actually increasing as a result. So you know our job is to make sure. The customer finds the equation to be done that for over thirty million customers with a long period of time in our goal is to extend that out beyond the family. I think we've got a really strong probability Andrew John. It's great to see you this morning. And congratulations and good luck on the on. This launched the question. I have two questions. The biggest I think is a distribution question. Which is and. Maybe you can explain what's happened with the likes of comcast parent company of this network. Amazon and Roku which a stoically with been strong distribution partners for the HBO product but are not on board at least from what I understand at the moment with HBO. Max and what that does to your reach a Bra List and distributors who are working with us the traditional and the market is the pay TV. Marcus actually signed on going to carry four. They're going to be successful years with. Hp Amax just like they were HBO along the providers doing that. Frankly you mentioned your parent company I'm optimistic still opportunity for something to be on there. I suspect that there's an opportunity that need other pay. Tv providers are given the vast majority. The ECO system is a likely become interview just useful. Come her moving forward. I think the interesting dynamic you're alluding to is Roma who Amazon at this point elected mocked distributors. I got and I didn't expect first of all have distribution across the entire race. I think must be doing something rightist. Somebody believes now to be more in conflict with your business so I don't necessarily take a bad sign but I do find it a bit ironic when I think banning litigation heard prior to the Time Warner eighteen transaction closing the concern was about withholding content from traditional distributors. And what we have now. We actually have dynamic where we have. New Technology viewers individual H. Who are likely not student and I think that dynamic is an important one understanding shows fast. The market's moving how we got to respond to those changes. I just to follow up with one other question which relates to this which is speak to the marketing challenge which. I think there may be one in terms of getting people to download the APP because some of these cable operators aren't going to necessarily be carrying it as an on demand on the box if you will so so what has to happen given that you do have these multiple brands and getting people to understand that they need to actually go get this. Get this particular product. It's a good question this

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