Report: Warner Bros. Discovery Shopping HBO Originals to Netflix in Latest Attempt to Monetize Library
The era of deep content cuts may be over at Warner Bros. Discovery, but it’s becoming increasingly apparent that CEO David Zaslav wants his legacy at the company to be primarily financial. Zaslav is continuing to chart his own path to streaming excellence at WBD and is willing to buck some sacrosanct streaming rules in order to get there.
One such rule that has apparently gone by the board at WBD is streaming exclusivity. An exclusive report from Deadline reveals the company is shopping some HBO Original series to Netflix, including the Issa Rae comedy series “Insecure.” Other titles have also been discussed, but nothing is final between the two companies yet, and the potential deal could still collapse.
Even though nothing is final yet, the mere willingness to license originals to competitors is a taboo most streamers in the industry haven’t even contemplated breaking. But WBD is clearly willing to break some eggs to make an omelet, though Deadline’s reporting reveals HBO veterans pushed back against the potential deal with Netflix but were overruled.
WBD has licensed shows like “Westworld,” “The Nevers” and others to free streaming services Tubi and The Roku Channel in the past, but this is the first time it has sent its originals to a premium subscription video service like Netflix. None of the shows sent to Netflix under the proposed agreement would be exclusive to that service, however; all would continue to stream on WBD’s platform Max simultaneously with Netflix.
The negotiations would seem to indicate that Zaslav is no longer feeling disputatious toward Netflix regarding its payment policy. Last December, it was reported Zaslav took umbrage at the way Netflix structured its licensing payments, but some kind of resolution must have been achieved if the companies are discussing another licensing deal.
Sending originals to Netflix means that WBD will have less content to create its own free, ad-supported streaming service. The company says that such a service is still coming, but it’s still waiting for all the financial stars to align before it makes sense to launch that platform. If WBD can make more money from licensing fees than it can by launching a new streaming service right now, that’s what it will do.
It’s hard to blame WBD for wanting to carry its momentum forward. It expects its streaming segment to turn a net profit this year, an elusive financial goal that all streamers are chasing. WBD saw its streamers Max and discovery+ turn in a $50 million profit in the first quarter, and if it wants to keep the good times rolling it has to continue making moves to improve its bottom line.
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.