Warner Bros. Discovery has decided not to merge its two streaming services, HBO Max and Discovery+. This change in strategy comes after research showed that Discovery+ subscribers might not want to pay a higher price if the services were combined.
HBO Max currently costs $16 per month or $10 with ads, while Discovery+ costs $7 or $5 with ads. The plan for Discovery+ is to continue as a separate service, even as HBO Max is set to be rebranded in the spring. The rebranded service will likely be called “Max” to reflect its broader subscriber base and its goal of going beyond just premium cable.
At the same time, Warner Bros. Discovery is also making efforts to expand its free, ad-supported streaming options. The company recently made deals with Roku and Tubi to license shows from Warner Bros Television and HBO, and it has plans to launch FAST channels later in the year.
Warner Bros. Discovery was created after the $43 billion merger between WarnerMedia and Discovery in April 2022. The company is navigating through changes in the TV industry and uncertainty around the profit models in streaming. The subscriber numbers for Discovery+ have not been disclosed separately in recent quarters, but they have been included in the overall subscriber count, which includes HBO.
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