HBO Max as we know it will soon cease to exist. In its first earnings call since the two media properties merged earlier this year, Warner Bros. Discovery announced that it plans to combine HBOMax and Discovery+ into a single streaming service, which will debut in the summer of 2023. It’s unclear whether the new streamer will be a reference to HBO: The company’s head of global streaming, JB Perrette, said the company is still researching 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. “At the end of the day, bringing all the content together was the only way we saw to make this a viable business,” Perrette told analysts.
The leadership of Warner Bros. is planning a significant overhaul of its streaming offerings and also has to cut $3 billion in costs, prompting rumors that an HBO Max spinoff is on the way. Executives did not reveal the name of the new platform or any pricing details, but it will include an ad-free and less expensive plan. You can also add a free, ad-supported tier to expand your audience even further.
There was no mention of layoffs at HBO Max on today’s earnings call, which The Wrap reported were imminent 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 on the new unified streamer. The company suddenly announced this week that it was canceling two movies in development for HBO Max: Batgirl and Scoob!. At the same time, the streamer announced it was canceling The Gordita Chronicles and ending live children’s and family programming. Several shows and movies have disappeared from HBO Max in recent weeks, including Moonshot, The Witches, and An American Pickle, and more are reported to follow.
One thing is certain: we will see far fewer blockbuster movies on the new streamer, as was the norm during the pandemic. The CEO of Warner Bros. Discovery’s David Zaslav said that releasing movies in theaters only generated higher profits. “That’s why most people got into this business: to be on the big screen when the lights went out,” Zaslav said. “That’s the magic, and the economic model is much stronger.”
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