HBO Max as we know it will soon be gone. In its first earnings call since the two media properties merged earlier this year, Warner Bros. Discovery announced plans to combine HBOMax and Discovery+ into a single streaming service — slated to debut in the summer of 2023. It’s unclear whether the new streamer will reference HBO at all — the company’s head of global streaming JB Perrette said the company still does research on how consumers perceive the brand name.
The news comes after the newly merged company posted a net loss of $3.42 billion in the second quarter. “Ultimately, bringing all the content together was the only way we saw to make this a viable business,” Perrett told analysts.
The management of Warner Bros. is planning a major shake-up of its streaming offerings and also has to cut $3 billion in costs, sparking rumors that a gutting of HBO Max is underway. Executives did not reveal the name of the new platform or pricing details, but did reveal that it will include no ads and a cheaper ad-supported plan. It can also add an ad-supported free tier to further expand its audience.
Cuts at HBO Max were not mentioned during today’s earnings call — which The Wrap reported are inevitable as the two streaming platforms restructure. Engadget has reached out to HBO Max for comment and will update if we hear back.
It’s unclear exactly how the merger will affect future content offerings at the newly merged streamer. The company suddenly announced this week that it was canceling two movies in development for HBO Max — Batgirl and Scoob!. Around the same time, the streamer announced it was canceling The Gordita Chronicles show and ending live children’s and family programming. A number of shows and movies have disappeared from HBO Max in recent weeks, including Moonshot, The Witches, and An American Pickle, with more reportedly to follow.
One thing’s for sure: we’ll see far fewer hit movies premiering on the new streamer, as has been the norm during the pandemic. Warner Bros. CEO Discovery’s David Zaslav said that releasing movies in theaters simply generates higher profits. “That’s why most people got into this business — to be on the big screen when the lights go out,” Mr. Zaslav said. “That’s the magic, and the economic model is much stronger.”
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