Paramount plans mega streaming service with HBO

The streaming market is undergoing one of the biggest changes in recent years. Paramount is acquiring Warner Bros. Discovery and plans to merge HBO Max and Paramount+ as part of the transaction. Subject to regulatory approval, this will create a new streaming service with approximately 200 million subscribers.

The starting point was a deal already negotiated between Netflix and Warner Bros. Discovery (WBD). At the beginning of December, Netflix agreed to acquire the company, excluding its linear TV assets, for approximately $83 billion.

However, Paramount Skydance was also pursuing its own plans. The company significantly improved its offer in the following weeks. Last week, Warner Bros. Discovery finally accepted Paramount's revised offer.

The market expected a counteroffer from Netflix. Instead, Netflix withdrew completely from the bidding process. This meant the contract went to Paramount.

The acquisition by Paramount

With the decision in favor of Paramount Skydance, a change of ownership at Warner Bros. Discovery is imminent. Upon completion of the transaction, Paramount will assume control of the company.

In a conference call as part of the investor briefing on the WBD transaction, Paramount CEO David Ellison spoke for the first time in more detail about the strategic plans following the acquisition. A key topic was the future streaming strategy (via CNBC).

HBO Max and Paramount+ will become a service

Ellison announced that HBO Max and Paramount+ are to be merged into a single streaming service. This is contingent upon regulatory approval of Paramount Skydance's acquisition of Warner Bros. Discovery.

Based on current subscriber numbers, the combined service would reach approximately 200 million users. Ellison mentioned this figure during the investor conference. It remained unclear how the new service would be priced. The company also provided no details regarding its name.

The future of the HBO brand

However, there was a clear statement regarding the HBO brand. David Ellison stated that HBO should not be touched. HBO has stood for high-quality programming for decades and possesses a strong brand identity.

According to information from within the company, it can be assumed that HBO will remain as a sub-brand within the new streaming service.

The question of the name remains open

Which brand will take center stage in the future is currently undecided. HBO Max is currently the larger of the two streaming services, which could argue for retaining that name. At the same time, Paramount Skydance is the acquiring company, which is also likely to influence the brand strategy.

It is also possible that the joint service will be given a completely new name. A final decision on this has not yet been communicated.

Importance for the market

With the planned merger of HBO Max and Paramount+, there will soon be one less major streaming service. Instead of two separate platforms, a single, unified offering will be created under the Paramount umbrella. If the merger is approved, the new service, with approximately 200 million subscribers, will be among the largest streaming providers worldwide.

Streaming merger: HBO Max and Paramount+ on the verge of joining forces

Paramount has prevailed over Netflix in the bidding process and is acquiring Warner Bros. Discovery. Following regulatory approval, HBO Max and Paramount+ will merge into a single streaming service.

Details regarding pricing and brand management are still pending. However, it is certain that the HBO brand will be retained and the streaming market is facing a structural transformation. (Image: Shutterstock / Gorodenkoff)