Roku Welcomes HBO Max

Roku announced Wednesday it reached a deal with AT&T’s WarnerMedia to bring HBO Max to its platform.

HBO Max, AT&T’s [$T] counterattack to Netflix [$NFLX] and Disney+, launched in May. WarnerMedia plans to deliver in a big way by unleashing all of its 17 films in 2021 on HBO Max at the same time they arrive in theaters. What’s more, Wonder Woman 1984 will start streaming on the service on Christmas this year.

HBO Max was excluded from Roku and Amazon Fire TV platforms for months. The latter added HBO Max in November after striking a deal with WarnerMedia. Platforms like Roku enable consumers to stream live TV from their living rooms. The company gets a cut from advertisements and subscriptions on its platform. Disney Rolls Out Streaming Plans & They’re Not Playin’

Roku has become a lucrative coronavirus play. Although it lost more than half of its value at one point this year, the stock has more than doubled in 2020 to date. As consumers found themselves stuck in lockdowns and self-imposed isolation, Roku facilitated low-cost entertainment for millions.

“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 vice president of Roku’s platform business, said.

Earlier this month, Citi Research analyst Jason Bazinet pointed to HBO Max joining Roku as a potential catalyst for the stock to rise. He also pointed to a potential addition of Discovery’s discovery+ app. Roku stock popped 4.3% in after-hours trading Wednesday. These gains came after the stock rose 1.8% during intraday trading. The stock has skyrocketed 143% in the past year, as it has added millions during the pandy.

The Roku IPO at the Nasdaq, September 28, 2017.

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