Gone are the days when you had to get a separate subscription for both HBO Max and Discovery Plus. In the recent turn of events, you will be elated to know that Discovery Plus has announced its merger with WarnerMedia.
Now the platforms have combined to provide you with streaming services of both Discovery Plus and HBO Max content in one subscription. This way, you can get two platforms in the form of a bundle – similar to Disney Plus and Hulu bundle.
Gunnar Wiedenfels will now be the CFO of the bundle as per the announcement made during the Deutsche Bank 30th Annual Media, Internet & Telecom Conference. The prep to combine both Discovery Plus and WarnerBros Media has already begun, however, the speculations started much earlier. The solo platforms are now available in the bundle option. Of course, the merger has not gone live as the strategy to combine the two platforms in the best way possible has just started.
It’s clear from the conversation at the conference that Discovery Plus in Australia and worldwide will be merged with HBO Max and cater to a global audience. At the moment, HBO Max is only available to the audience in the US. Whereas, Discovery Plus is available to watch in Canada, US, Brazil and parts of Europe and Asia. The decision is yet to be announced.
In the press conference, Wiedenfels revealed that this merger will be known as a combined product rather than the bundle that Disney Plus and Hulu offer. He has further revealed that the quality and depth of the content offered by this merger will be phenomenal and a valuable proposition for the consumers.
This planning will take time and so consumers shouldn’t expect a quick delivery. Although he has promised that the procedure won’t take years, he did mention that it could take up to several months. While he’s at it, he will come up with an interim solution.
About the product, he has said that he will be looking into single sign-ups that will help them get early benefits. Of course, he did mention the problem that he will predictably face. He said that it will be bringing together the technology that elevates the experience of streaming. He is hoping to build a premium direct-to-consumer product for consumers and so building that dream will take time.
At the moment, Discovery Plus is available for the monthly cost of $4.99 with ads. If you want a subscription to Discovery Plus without ads, you will have to pay $6.99 per month. The company has reported that the subtotal of Discovery Plus streaming is approximately 22 million worldwide. At least that was the estimation in 2021.
On the other hand, HBO Max and HBO have estimated a rough number of 73 million subscribers. So far, the monthly subscription of HBO Max with ads is standing at $9.99 and $14.99 without ads. When Gunner was asked about the possible cost of a monthly subscription for the new bundle, he didn’t give an estimation.
Therefore, there is no idea how much the streaming would cost when the two platforms are combined. However, what he did mention was that the final product would have both ads and without ads solutions.
He mentioned the consequences of direct-to-consumer products. He believes that there are greater risks at that, since there will be approximately 100 million viewers that will face the impacts of the two products merging. Hence, he is ready and preparing to create a product that is detailed – requiring a disciplined regime.
The deal of the merger will be closing at $43 million and will be confirmed by the second quarter. It will be around that time when the marketing will begin in full swing; an action to establish the right synergy by the time the product arrives .
He highlighted that when it comes to the positioning of the product, HBO Max seems more male-skewing, whereas the Discovery Plus platform has more female viewership. He further said that the content on Discovery Plus is driven by daily consumption, whereas HBO Max hosts content that is driven by events. And so, when you bring the two platforms together, you get both male and female viewership, as well as daily and event-based consumers.
He ended the conference by stating how excited he is for the final product. When the two platforms are combined to bring a direct-to-consumer product, it will have different and unique metrics.
Thus, a blockbuster revenue is expected with certainty. He also gave us a glimpse of what one can expect once the international market is included. He believes that the business will grow exponentially.
In Conclusion
Exciting times are ahead of us with the merger of HBO Max and Discovery Plus, and previous bundles available to consumers. Would Netflix and other streaming services join the bandwagon? Only time will tell!
