Will Paramount double down on bundling HBO Max?
Will Paramount double down on bundling HBO Max?
The streamer is already the most commonly bundled service in the world. Paramount seems poised to continue that pattern.
What’s the future of HBO Max look like? At the moment, the streamer seems destined to fall under the auspices of Paramount Skydance; Paramount recently beat out Netflix in a months-long pursuit of the company, and expects to close its deal by the third quarter of this year.
We already know that Paramount plans to integrate HBO Max and Paramount+ onto the same platform, but what’s less clear is the fate of various streaming bundles that HBO Max is included in around the world. HBO Max is incredibly popular globally as a bundled service, and while Paramount hasn’t announced whether or not it will continue to offer the streamer in so many combos, we think the company will do whatever it can to not only keep those bundles alive but also to increase the number available.
Data from Ampere Analysis demonstrates the popularity of HBO Max as a bundled service. Here in the United States, HBO Max is most famously bundled with Disney+ and Hulu starting at $20 per month for all three services. But outside the U.S., the streamer’s bundling footprint is much larger.
Ampere found that HBO Max is available in more global bundles than any other streaming service — even Disney+. HBO Max has a total of 60 unique bundle partners, including telecom companies, other streaming platforms, and pay-TV services. In total, HBO Max is available in 303 distinct packages with these partners.
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In large part, the popularity of HBO Max as a bundling option is a way for programmers and distributors to replicate the days of cable. For years, having HBO as part of a channel package felt like the very definition of luxury, and the prestige of the HBO brand has survived the downfall of pay-TV by thriving in the streaming space. Offering viewers the chance to sign up for HBO Max with other services allows them to feel like they’re still buying into that premium experience.
Once Paramount takes over, I don’t expect any kind of retreat from this bundling philosophy. In fact, Paramount will probably launch a new bundle including HBO Max as soon as possible; Paramount’s current brand is much more associated with general entertainment as opposed to HBO Max’s prestige reputation. A bundle of HBO Max and Paramount+ will probably launch quite quickly after Paramount assumes control, if not before.
But will Paramount be as eager to continue seeking outside partnerships for HBO Max? New Paramount CEO David Ellison has already given a fairly large hint in that regard, saying last August that his company was ready and eager to talk streaming bundles for Paramount+. There’s no reason to think that eagerness won’t extend to HBO Max as well, but it will bear watching to see how much control Ellison actually chooses to exercise over the streamer.
Ellison has promised that HBO will act with independence, once owned by Paramount, but those comments likely are far more focused on the creative end than the business side. However, if Paramount leaves the choice up to HBO’s current executive team, there’s little doubt as to which path the service will continue to take.
A survey from October found that more than 50% of viewers now use at least one bundle, in large part thanks to the value imparted by the lower cost. Viewers are fairly desperate to save money on entertainment, which makes streaming bundles all the more essential as time goes by. Paramount’s decision-makers know quite well how much the cost of entertainment is going up, and retreating on the number of bundles HBO Max is included in wouldn’t earn it any positive PR — something it may need if it has to cut as many jobs as Netflix said would be needed if Paramount’s takeover of WBD were successful.
Paramount may also find it needs the money generated by bundling partnerships once it owns HBO Max. The company has spent big bucks on top sports rights in recent months, and will have to spend more to keep the NFL on CBS during ongoing negotiations. Bundles don’t pay as much as selling subscriptions directly to consumers, but they are reliable revenue sources. Pulling out of them abruptly would hardly be a wise financial move on Paramount’s part.
There’s really no universe where pulling back on HBO Max’s bundled offerings makes sense for Paramount. The company will almost certainly look to increase revenue streams as much as possible once it completes its purchase of WBD, and will not only continue to offer HBO Max in its current bundled forms, but will seek out as many additional partnerships as it can.
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.