It’s been a while, so let’s see what all the streaming services have been up to lately.
Warner Bros. Discovery Alters Its Streaming Strategy
When media companies WarnerMedia and Discovery merged in April 2022, they each brought their signature streaming service with them. WarnerMedia had launched HBO Max, which features a lot of scripted shows and animation, and Discovery owned the reality/infotainment-centered Discovery+. The services both have ad-supported tiers, but pricing for HBO Max is currently starts at $9.99 a month while Discovery+ is half that.
Since becoming Warner Bros. Discovery, executives have been talking merging the streaming platforms as well. Details overall have been scarce, but the new combined service is likely to be called “Max”.
However, the company is backtracking now, saying Discovery+ will continue to exist independently.
In addition, Warner Bros. Discovery is expected to debut WBTV, a free ad-supported streaming service similar to Paramount’s PlutoTV. They have also licensed content to Roku and Tubi to have channels devoted to Warner Bros. Discovery featured on those services.
I didn’t understand why Warner Bros. Discovery was so insistent they needed to blend their two main streaming platforms. A lot of people seem drawn to one side of Warner Bros. Discovery but not as much to the other. But hey, HBO Max subscribers probably could justify a few more dollars per month in their bill in exchange for Discovery+ content. Discovery+ members, however? They would be gaining a lot more to watch, sure, but their bill will easily double. And in this competitive streaming market, that’s a good reason to walk away from any service. Don’t know why executives didn’t realize this a long time ago.
But I do like PlutoTV. There are so many channels where you can easily dive in and experience nostalgia or experience a series you might have otherwise missed out on. WBTV sounds like dumb name though. It looks like a local news call sign, and in fact, there is a WBTV in Charlotte, North Carolina. Not having the name of the new company at the merger announcement just to combine their two main flagships, HBO Max 2.0 may be just Max, WBTV…does this company have any naming sense?
Paramount Prepares a Price Hike for Showtime
Speaking of PlutoTV, the service is doing very well for Paramount. Paramount’s flagship service, Paramount+, has also added subscribers.
Like Warner Bros. Discovery planned to with Discovery+, Paramount is sunsetting stand-alone Showtime.
Showtime is currently available as part of a bundle with Paramount+. However, around July, Showtime content will a part of Paramount+. With that comes a price increase for most users.
The basic ad-supported tier will not include Showtime and go up by $1 to $5.99 a month; the ad-free option will include Showtime but cost $11.99, up $2 from the current price. However, for those who have Paramount+ Premium and Showtime, this will mean a savings of almost $3 a month.
Unlike Discovery+ and HBO Max, integrating Showtime with Paramount+ makes sense. The two brands don’t have distinct individual identities like the Discovery and WarnerMedia brands. Unfortunately, though, it seems those who are happy paying about $8 a month for Paramount+ Essentials with Showtime option will either need to downgrade and give up Showtime, or pay several dollars more to lose the ads and continue watching Showtime movies and shows. Perhaps Paramount will announce a third tier to target these individuals, but otherwise, a price increase isn’t surprising considering most of the streaming platforms have done the same in recent months. Most of media conglomerates are losing money on streaming, and Paramount is going to take a big financial hit from dropping the Showtime app and adding it to Paramount+.
They may also take a financial hit if Warner Bros. Discovery’s lawsuit against them over South Park‘s streaming rights is successful. But the suit against Paramount has only been filed very recently, so it will surely take a while for any resolution to work its way through the courts.
A FAST Netflix?
PlutoTV and Tubi are both called FAST services: free ad-supported television. The upcoming WBTV will be a FAST service. And according to Bloomberg, Netflix is thinking about creating its own FAST platform.
Like the aforementioned competitors, Netflix could put up its older content and host licensed series and movies.
This FAST Netflix won’t be coming anytime soon, and it’s not even guaranteed to be in the works.
But Netflix isn’t dismissing the idea, and this reflects the change of direction after being reluctant to have an ad-supported tier for so many years.
I think it would be awesome to see a FAST Netflix. They have a lot of anime exclusives, and I know I’m not the only one who has immediately lost interest in a series once it was revealed for Netflix. Netflix could definitely have a channel or two to play some of those shows that are languishing on the platform — perhaps even help rejuvenate some of those titles who are in need of a continuation.
Of course, I think they could also gain some cash by having more home video releases (either directly or licensing them out), but alas…
Disney Debates Making Changes
Disney is one of the biggest media conglomerates, but like other media companies, they’ve been making cuts to repair their bottom line. With Disney+ still losing money — almost $1.5 billion – the returning CEO has said streaming is “the future”.
So much so that Disney is considering licensing content to other platforms.
While some Disney content is available elsewhere, like at Amazon Prime Video, Disney has mostly restricted its shows and movies to its own platforms.
Disney is looking for upfront cash in exchange, but it’s possible more Disney/Disney+ content appears on Hulu, Amazon Prime, or even FAST services like Tubi.
Speaking of Hulu, while Disney heavily promotes the platform (as in part of the “Disney Bundle”), Disney technically is a co-owner. Disney owns two-thirds of Hulu while Comcast owns the rest. Under the terms of the deal, in 2024, Disney can either buy the remaining shares from Comcast or force Comcast to sell its stake.
The current CEO of Disney has stated “everything’s on the table” in regards to Hulu, while the previous CEO had been aggressively trying to purchase Hulu early.
So while it’s viewed as unlikely since Hulu is second only to Netflix, Disney could back away from Hulu completely and sell its 66% share.
Being second is probably a good reason Disney wouldn’t want to walk away, but who knows. But perhaps if Disney takes full control of Hulu, they can license some of its Disney+ content to Hulu in an intra-company deal. Or perhaps more of Disney’s anime licenses would fit better there and keep Disney+ as more for their own developed properties.
If Disney does want to sell, I don’t know who would pick it up. Most of the competition is working on their own services and licensing stuff out to FAST and other platforms. I don’t know who would be willing to something like $20 billion for Hulu. Companies that maybe would like Amazon or Netflix may have antitrust concerns to boot. But as 2024 approaches, it will be interesting to see what agreement Disney and Comcast reach.