Netflix – HBO Max Is Lastly Coming to Roku. The Stock Is Rising.

Textual content dimension

Roku

mentioned Wednesday it reached a take care of

AT&T’s

WarnerMedia to deliver HBO Max to its platform. Roku stock was rising in after-market buying and selling, following the information.

HBO Max, AT&T’s (ticker: T) reply to
NFLX“>
Netflix

(NFLX) and Disney+, launched in May. WarnerMedia plans to launch all of its 17 movies subsequent yr on HBO Max on the identical time they arrive in theaters. Marvel Lady 1984 will start streaming on the service on Christmas this yr.

HBO Max was initially left off of Roku and

Amazon.com’s

Hearth TV platforms for months. The latter added HBO Max in November after reaching a take care of WarnerMedia.

Platforms like Roku enable customers to entry streaming companies from their dwelling rooms. The corporate will get a reduce from ads and subscriptions on its platform. Hashing out phrases of such agreements is probably going what held issues up.

“Reaching mutually beneficial agreements where Roku grows together with our partners is how we deliver an exceptional user experience at an incredible value for consumers and we are excited by the opportunity to deepen our longstanding relationship with the team at WarnerMedia,” Scott Rosenberg, senior vp of Roku’s platform enterprise, mentioned.

Earlier this month, Citi Analysis analyst Jason Bazinet pointed to HBO Max becoming a member of Roku as a possible catalyst for the stock to rise. He additionally pointed to a possible addition of Discovery’s discovery+ app.

Roku stock popped 4.3% in after-hours buying and selling Wednesday. Such features got here after the stock rose 1.8% throughout common buying and selling. The stock has soared 143% up to now 12 months, because it has added hundreds of thousands of customers throughout the pandemic.

Write to Connor Smith at connor.smith@barrons.com