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Charter (CHTR) Signs Multi-Year Distribution Deal for HBO MAX

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Charter Communications (CHTR - Free Report) recently signed a multi-year distribution agreement with AT& T’s (T - Free Report) WarnerMedia for the HBO Max streaming service, which debuts next month.

Per the agreement, Charter customers who have subscribed to HBO will be given complimentary access to HBO Max at no additional charge.

Charter, a Zacks Rank #3 (Hold) company, reaches 29 million customers in 41 U.S. states through its Spectrum brand. The deal also includes subscribers in Charter’s Spectrum Silver and Gold video packages.

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Additionally, non-HBO subscribing Charter customers will be able to purchase access to the streaming platform directly from the operator.

Notably, HBO Max costs $14.99 a month, the same price as an HBO subscription. Its streaming content portfolio includes 10,000 hours of curated content including HBO titles such as Game of Thrones and The Wire along with originals and an extensive catalogue of film and TV shows from across the WarnerMedia empire.

Charter Communications, Inc. Price and Consensus

Charter Communications, Inc. Price and Consensus

Charter Communications, Inc. price-consensus-chart | Charter Communications, Inc. Quote

Charter’s Expansive Footprint to Aid HBO MAX

Charter is one of the leading cable providers in the United States. Compared with both AT&T and Comcast (CMCSA - Free Report) , Charter does not have a vast direct-to-consumer streaming ambitions. However, it has recently ramped up its slate of original programming. The addition of HBO Max definitely makes Charter’s Spectrum offering more attractive.

Notably, in 2019, Charter signed a distribution deal with Disney (DIS - Free Report) to continue delivery of the media giant’s content to Spectrum customers through Disney’s streaming services, including Hulu, ESPN+ and Disney+.

Moreover, HBO Max is coming to a densely populated streaming market, with individual offerings from Disney, Apple and Comcast. The new services, Disney+, Apple TV+ and Peacock are expected to provide significant challenges to incumbents, particularly Netflix, which dominates the streaming space.

Charter’s expansive presence in the United States is expected to help HBO Max gain rapid footprint and counter stiff competition in the streaming market.

The company’s latest distribution deal with Warner will boost the chances of HBO Max’s success for Warner in the crowded U.S. OTT market.

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