It was clear from early on that the Discovery executives had a much different vision for the future of Warner Bros. Discovery than their counterparts from WarnerMedia did. And since Discovery was the company doing the acquiring in this situation, they are now getting to implement that vision.
On Monday, Bloomberg's Lucas Shaw reported that less than one year after HBO Max was removed from Prime Video Channels, WBD and Amazon are in discussions to bring it back. At the time of its departure, the major sticking point for WarnerMedia was the ability to own the data that was collected by customers who used the streaming service via Amazon. Though, obviously, HBO Max had access to their subscribers’ basic information, by going through a third party, their larger viewing habits were hidden from Warner Media; in the larger commercial environment, that type of information is extremely valuable, especially since HBO Max had just launched an ad-supported tier in June 2021.
However, while having full control over their users’ information might have been beneficial for the streamer, it also came with a significant downside. Realizing that a not-insignificant number of subscribers might decide not to make the move from Prime Video Channels to HBO Max proper, Warner Media offered a 50% discount in order to hopefully retain subscribers, but ultimately, the move away from Amazon was a major factor in the service’s domestic subscriber total dropping by 1.8 million during the third quarter of 2021.
Now that leadership of the unified Warner Bros. Discovery is squarely in CEO David Zaslav’s control, things are changing. discovery+ never left Prime Video Channels — and is currently available for just $0.99 for two months via a Prime Day deal — and according to Bloomberg the lifestyle streamer has a much different arrangement with the online retailer than HBO Max previously did.
Amazon and discovery+ have reportedly been testing an arrangement that allows WBD access to some of its subscribers’ additional data. Presumably, if HBOMax rejoins the Channels platform, Zaslav would push for the same program to be in place, essentially eliminating at least a portion of his predecessors’ data ownership concerns, while also plugging back into the retail machine that is Amazon.
Zaslav’s first order of business when taking over the combined company has been to shed $3 billion from the budget in an effort to get the company’s debt under control. That has manifested itself in a significant streamlining of staff, ending scripted programs at TBS and TNT, the cancellation of high-budget programs including J.J. Abrams’ $250 million “Demimonde,” the recent move to shutdown production in a number of European countries, and more.
By becoming available again via Amazon, HBO Max will have the opportunity to reconnect with subscribers that never migrated over to the independent platform, but also to continue to grow its subscriber base. In its Q3 2021 earnings report following the streamer’s removal from Prime Video Channels, HBO Max reported having 69.4 million global subscribers; after Q1 2022, that number had grown to 76.8 million. However, the domestic total was still 200,000 subscribers under where it was before exiting Prime Video Channels six months prior.
In the Bloomberg article, Shaw does caution that nothing has been finalized and that discussions between Warner Bros. Discovery and Amazon could ultimately not result in HBO Max rejoining the Prime Video platform. However, if the past is any indication, Zaslav seems singularly focused on eliminating that $3 billion of debt, and reengaging with Amazon could very well provide a substantial subscriber boost, ultimately helping get the bottom line where the emboldened CEO wants it to be.
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.