CNN Max Viewership Data Shows Why Live News and Sports are Essential for Streaming Platforms in the Future
Warner Bros. Discovery CEO David Zasalv revealed that users who watched CNN content on Max were 20 years younger than their linear counterparts.
The addition of CNN content to Max was not a sure-fire path to success for Warner Bros. Discovery. The company was taking a big chance that a TV segment that is traditionally accessed by older viewers would do well on streaming, a medium that is used more often by younger audiences, to say nothing of the objections raised by its linear TV partners who feared a watering-down of the linear CNN channel.
- WBD launched its ‘CNN Max’ content hub on Max in late September.
- During the company’s conference call to discuss its third-quarter earnings, CEO David Zaslav revealed CNN Max viewers were nearly 20 years younger on average than their linear counterparts.
- These numbers make it clear that adding live sports and news as Max has done is critical to the survival of streaming platforms in an age of aggregation.
Have You Heard the News on Max?
WBD first announced that it was introducing content from CNN to Max in August. That content became available to users as of the last few days of September, and ever since then younger viewers have been flocking to the service to stream live news content, according to WBD CEO David Zaslav, who discussed CNN Max with Wall Street analysts during a conference call to discuss the company’s quarterly earnings report.
“In October, we launched CNN Max, a 24/7 streaming offering with live news, analysis, and original programming from the most recognizable news brand in the world,” Zaslav said. And while CNN is a strong linear asset, we also appreciate as a segment of the population, mostly young people who don’t subscribe to cable. And this new streaming product appeals to them as well as evidenced by CNN Max viewers being nearly 20 years younger than traditional linear viewers and the vast majority of our CNN Max viewers being non-pay TV subs. We’re analyzing everything we’re learning in these early stages, and we’ll continue to improve the offering.”
It seems from Zaslav’s words that he’s learned two very important lessons already. The first is that younger audiences will indeed flock to live news content if it’s made accessible to them; the second is that users will gravitate to content that was only available via a pay-TV subscription if companies make it available outside the traditional cable package.
Is Zaslav Trying to Rebuild the Cable Bundle for the Future?
When looking at the changes Zaslav has made to the Max platform in the past few months, it’s hard to argue that he’s not trying to replicate the old cable bundle with streaming. Not only has content from CNN made its way to Max since late September, but the streamer has also added live sports from its linear networks TNT and TBS in its new Bleacher Report sports add-on. This allows Max to offer live NBA and NHL games, as well as other sports like U.S. Soccer.
These are shrewd moves on Max’s part, particularly if it wants to bring younger viewers to the table in increasing numbers. A majority of both millennial and Gen-Z viewers say that streaming offers a better sports-watching experience than traditional TV, and a recent survey from Antenna found that users who sign up to a streaming platform to watch live sports have a better chance of sticking with that service for the long haul.
These numbers prove that in the future, streaming platforms will need to have a full suite of content offerings, including live sports and news if they want to stand out among their competitors. This is especially crucial as streaming platforms begin aggregating their content with each other, and the need to distinguish streaming conglomerates from each other will become more acute. Users will have to make choices with their money as the cost of streaming continues to rise, and services that offer the most types of content will stand above the rest.
If that sounds almost exactly like the cable bundle of old, it’s because that’s essentially what the industry is building toward. Zaslav seems to be leading the charge, but Disney may not be far behind as it prepares to merge Hulu and Disney+ into a single app and launch a streaming version of ESPN that doesn’t require a cable subscription. The main difference will be that companies like WBD and Disney will be selling these content bundles themselves, as opposed to using cable and satellite companies as middlemen to bundle their products with those of other streaming providers.
All of that is in the future, though how far into the future is certainly debatable. WBD is just beginning to see the fruits of its gamble in putting CNN content on Max, and now that the move appears to be paying off, competitors could move to integrate more content from their news outlets onto their streaming platforms as well.
Max
Max is a subscription video streaming service that gives access to the full HBO library, along with 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. Thanks to the B/R Sports add-on, users can watch NBA, MLB, NHL, March Madness, and NASCAR events.