Do New International Exclusivity Deals Mean Warner Bros. Discovery Has Abandoned Plans to Launch HBO Max Worldwide?
In March 2022, HBO Max launched in 15 European countries, bringing the number of territories that the streaming service was available in to 61. At the time, the Warner Bros. Discovery platform planned to expand to 190 markets by 2026, but recent exclusivity agreements and terminations around the world might indicate that the company is changing its plans for how it will roll the service out internationally moving forward.
In Australia, Foxtel Group and WBD have recently meaning that HBO, HBO Max Originals, Warner Bros. TV and Discovery shows, and more will continue to be available in Australia on Foxtel Group’s pay-TV service and streaming platform.
Meanwhile, U-Next, a Japanese streaming service, and WBD have also renewed their content agreement, and as a result, HBO shows will continue to be available in Japan via streaming video-on-demand (SVOD). Additionally, OSN Group, a satellite and streaming provider in the Middle East, has signed a new multi-year licensing agreement with WBD that will make it the region’s sole home for HBO programming. These multi-year agreements, which cover a base of almost 8 million pay TV and SVOD subscribers, make it unlikely that HBO Max will debut in these regions before 2025, according to analysis from Ampere Analysis.
“The exclusivity of HBO content which forms a part of these deals could delay a potential launch of HBO Max in the near future across over 20 countries;” Ampere analysis Rory Gooderick said, “which would potentially slow its original plan for HBO Max to reach 190 markets by 2026.”
The success of the services in these nations depends heavily on HBO programming. When HBO’s “House of the Dragon” debuted last year, Foxtel’s Binge reported record viewership. According to the Ampere popularity index, 25% of the top 100 most popular titles in Australia came from the production company alone, making WBD content the most popular overall in Australia. This percentage is slightly lower in Japan and the Middle East and North African (MENA) countries, but Warner Bros. Discovery is regularly listed as one of the most well-liked studios in these regions, the report notes.
There’s also evidence that WBD won’t be able to achieve its initial goals based on its removal of HBO content in India and other European countries. Last year, WBD abandoned plans to introduce HBO Max to India, and as of March 31, HBO programming will no longer be available on the Indian streaming service Disney+ Hotstar. This, though, could be due in part to Disney CEO Bob Iger’s plan to cut $5.5 billion in expenses, including $3 billion in non-sports content. It has been rumored by local industry analysts that WBD will strengthen its affiliation with India’s Prime Video, which already offers the HBO Max originals, according to Deadline.
And as part of WBD’s cost-saving measures, the company stopped producing originals for HBO Max in the Nordics, Central Europe, the Netherlands, and Turkey and remove some material from its platform in order to free up licensing agreements elsewhere. At the time, WBD said in a statement that the move came as the company reviewed its “current content proposition on the existing services” as it prepared to merge HBO Max and discovery+ into a single streaming service. However, the company maintained it was committed to these markets long-term.
“Our commitment to these markets has not changed,” WBD said. “We will continue to commission local content for Warner Bros. Discovery’s linear networks in these regions and we remain substantial acquirers of local third-party content for use on our streaming services.”
WBD has already promised to cut costs by $3.5 billion over the next three years. Launching a direct-to-consumer streaming service in these regions would be an expensive move, potentially in conflict with its cost-cutting measures. Having well-established content providers pay to license WBD programming seems like a much more budget-friendly path for the company.
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