Warner Bros. Discovery Signs Licensing Deal That Keeps Max out of Canada for Years; Why Not Launch New Service in Canada?
By every measure, Warner Bros. Discovery is genuinely excited about the upcoming launch of Max. The new streaming platform rolls out on May 23, and the company’s higher-ups are thrilled to offer customers a streaming option that integrates most of the content from discovery+ with HBO Max’s library at the same price that HBO Max currently costs.
That’s why the news from The Hollywood Reporter that WBD has struck a licensing deal with Canada’s Bell Media is a bit shocking. The deal encompasses English and French-language rights to all HBO and Max original series, the DC universe, and the “Harry Potter” franchise, which will be sent to Bell’s streaming platform Crave. It’s an exclusive deal, which means these shows cannot appear anywhere else in Canadian media, not even on Max itself.
The agreement includes new episodes, as well as library shows like “Friends” and “Game of Thrones.” It also grants pay and post-pay window rights for movie releases to Bell, which will include titles like “Shazam! Fury of the Gods” and “Dune: Part Two” when those movies leave theaters and head to streaming. The full terms of the deal were not disclosed, but it will run for multiple years.
“Bell Media is committed to providing Canadians with the most compelling content, and this deal, which secures the biggest titles on screens today, does just that,” Karine Moses, Senior VP of content development and news for Bell Media, said in a statement to THR.
The deal is so surprising because it will essentially prevent WBD from offering Max in Canada. It could technically still do so before its deal with Bell runs out, but it would not be able to stream any of its most popular titles, because those rights will reside with Crave. Canada is a fairly large streaming marketplace, and other companies like Netflix have found a lot of success there.
There is a possibility that new legislation recently passed by Canadian lawmakers had something to do with WBD’s decision. Last week, the Canadian Senate passed a bill that regulates streaming services more like traditional Canadian TV. Among other provisions the bill forces streamers to pay to support Canadian artists and creators, as well as promote Canadian-made content on their platforms. Broadcast TV providers in Canada have long been subject to these rules, but streamers had thus far been exempt.
Perhaps WBD wanted to avoid what it saw as a costly hassle by promoting Canadian content creators on Max. Bell Media is already well acquainted with these regulations, and will likely handle them with more ease than a company based in the United States. To be sure, negotiations between Bell and WBD for a deal like this have been going on for a while so the new law is not the only reason WBD agreed to the licensing pact. But it probably helped to confirm the decision in the heads of cost-minded WBD executives.
The bad news for Canadians is that the deal will likely prevent them from getting the new user experience WBD is so excited to bring to market with Max. The good news is they’ll still get all the high-quality content Warner has to offer, on a streaming platform they’re well-acquainted with in Crave.
Max
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