UPDATE 2/9: Slight change of plans here. Rather than combining the two streaming services, a new, as-yet-unnamed platform will feature all HBO Max and most Discovery+ content. But there will also be an option to subscribe only to Discovery+.
Original Story:
A new streaming service that merges HBO Max and Discovery+ into a single platform will launch earlier than initially planned.
Following better-than-expected progress, the merger will be pushed forward to spring 2023, Warner Bros. Discovery CEO David Zaslav announced during an earnings call.
The unnamed platform had been due to launch in the US sometime next summer and in Latin American and European markets in 2024.
At the moment, HBO Max and Discovery+ customers pay $14.99/month and $6.99/month for ad-free streaming or $9.99 and $4.99 for ad-supported viewing, respectively.
The merged service will see HBO shows such as Succession, Euphoria, and House of the Dragon being offered under the same house as 90 Day Fiance and Fixer Upper.
On the earnings call, Warner Bros. President for global streaming and gaming Jean-Briac Perrette said: “HBO Max has a competitive feature set, but has had performance and customer issues. Discovery+ has best-in-class performance and consumer ratings, but more limited features. Our combined service will focus on delivering the best of both, market-leading features with world-class performance."
Warner Bros. Discovery has been hit with declining revenues, however, absorbing a $2.8 billion net loss in the most recent quarter. That means the company has made significant cuts to its streaming lineups, including the cancellation of BatgirlBatgirl. During the earnings call, Zaslav said the company will be increasing its cost-cutting target to $3.5 billion while continuing layoffs.
The news comes as Netflix launched the ad-supported version of its service this month for $6.99 a month. The version also comes with cutbacks to video resolution, which maxes out at 720p and a lack of offline viewing. Not all content is available either.