The Reasons to Believe in HBO Max -- and the Reasons Not to

It's easy to see why AT&T (NYSE: T) wants to expand its streaming video business. Cable subscriptions are down -- streaming subscriptions are up. Content is king, but the most profitable streaming services are those that create their own. And AT&T is sitting on one of the most respected creators of premium content around: HBO. All things considered, AT&T's choice to step up its streaming offerings makes perfect sense. Hence the imminent arrival of HBO Max, the new subscription video on demand (SVOD) effort from AT&T.

But obvious opportunities have a habit of attracting competitors. Other companies, including tech companies and entertainment giants, are converging on the SVOD space. AT&T's variously IP-loaded, tech-savvy, and deep-pocketed competitors include established streaming brands like Netflix, relative newcomers like Walt Disney, and upcoming options like Comcast subsidiary NBCUniversal's Peacock. Does HBO Max have what it takes to succeed? Here are two reasons why it might -- and three reasons why it might not.

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Source Fool.com