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HBO Max and Discovery Plus to Merge Into Single Streaming Juggernaut
HBO Max and Discovery Plus to Merge Into Single Streaming Juggernaut
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The streaming wars just got a new heavyweight contender.
HBO Max and Discovery Plus will combine into a single subscription service after Discovery completes its merger with WarnerMedia this year, Discovery CFO Gunnar Wiedenfels said Monday.
The decision creates a streaming platform with the content arsenal and customer base to compete with the upper echelon of streaming giants, such as Netflix, Amazon Prime Video and Disney+. The combined app will include WarnerMedia’s HBO premium shows and Warner Bros.’ movies, as well as Discovery’s roster of unscripted programming.
Some speculated that the soon-to-be-merged media giant, which will be called Warner Bros. Discovery, could keep the HBO Max and Discovery+ apps as standalone products. Discovery CEO Dave Zaslav has long been a proponent of the cable bundle, which could be similarly applied to the streaming service model. (See: DIsney.)
“I think combining all of the content into a single app will ultimately make it much more compelling for the consumer and make it a true competitor to Netflix's breadth and depth of content,” Bloomberg industry analyst Geetha Ranganathan told dot.LA.
The move is not just about content. Warner Bros. Discovery can cut costs by streamlining multiple apps, bringing marketing and technology efforts under a single roof, she added. Plus, Discovery’s cable channel content – already edited with natural commercials in mind – is optimized for the ad-supported model that consumers are gravitating towards.
“HBO Max wants to accelerate an advertising tier and Discovery’s content will help them do that,” said Michael Nathanson, of the MoffettNathanson tech and media research firm.
Many details remain, from when the combined service will launch to how much it will cost. HBO Max is already on the pricier side at $14.99 per month (or $9.99 with ads), while Discovery Plus currently costs $4.99 per month with ads or $6.99 without. A combined app that costs more than $14.99 would seem to be a nonstarter for many consumers, some of whom already plan to ditch a subscription this year because it's too expensive.— Christian Hetrick
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