In a story Oct. 29 about AT&T's upcoming streaming service HBO Max, The Associated Press reported erroneously when it will become profitable. This version corrects that date based on updated information from AT&T and clarifies its spending plans for the service.

A corrected version of the story is below:

AT&T says HBO Max streaming service to launch in May for $15

AT&T says its HBO Max streaming service will join a crowded field in May

By TALI ARBEL

AP Technology Writer

AT&T said Tuesday that its HBO Max streaming service will launch in May for $15 a month, joining a crowded field.

The company has said HBO Max will become the "workhorse" for its video business as cord-cutting of traditional TV expands. It hopes to migrate people who pay for HBO in different ways today to the new platform. The service grew out of AT&T's $81 billion purchase of Time Warner, which AT&T has overhauled and rechristened WarnerMedia.

HBO Max will challenge Netflix alongside Disney, Comcast and Apple. It will be the most expensive of the new services that have announced prices, which could make it challenging to expand its customer base.

It is also the same price as HBO Now, the current HBO streaming service for people who don't get the cable channel. Company officials expect existing HBO customers — those subscribing either via cable or HBO Now — to switch to HBO Max, which will offer far more to watch.

Some existing subscribers to HBO's cable channel or HBO Now will get free access to HBO Max, AT&T said.

The company said it will launch a version of HBO Max with ads in 2021, a new twist for a brand known for being ad-free. The company wants to reach 50 million subscribers in the U.S. by 2025, and 75 to 90 million worldwide. It expects HBO Max to be profitable starting in 2025.

The service will offer movies and programs from HBO and the WarnerMedia library, including "Friends," which it will pull back from Netflix. Other hits like "The Big Bang Theory" and "South Park" will also be available.

It's aiming for kids with "Sesame Street" and an Elmo talk show. And it will have superhero movies from DC.

The service will also launch 50 original series in the first year, half targeted to younger adults and the remainder split between shows for kids and for adults. The service won't release a season's worth of episodes all at once, as Netflix typically does.

AT&T will bundle HBO Max with some unlimited wireless plans as well as certain "premium" home TV and internet plans to promote the streaming service. It will work with other cable and satellite companies to get them to offer the HBO Max service for their customers too.