11 Days ago, the official rebrand of HBO Max into Max (complete with select programming from Discovery+) launched. How is its performance looking so far? With some new statistics finally available, we asked Brandon Blake, our expert entertainment lawyer from Blake & Wang P.A, to round up what details we have to date.
Many Making the Switch
According to their streaming head, JB Perrette, over 70% of HBO Max subscribers have made the switch to the new Max platform. But what does that actually mean? They’ve downloaded the new Max app instead of the legacy app, which is no longer available. For older accounts, this required a direct action, but it would have been automated for most newer devices. There’s been no loss of consumers or payments (yet) over the switch, as existing HBO Max members will continue to pay for membership regardless.
However, Perrette was keen to emphasize that the performance so far ‘exceeds expectations’. According to their records, hours viewed per subscriber and total content watched have been increasing daily since the relaunch. Admittedly, it was well timed, with two popular series (Barry and Succession) entering their finales right after launch- a big temptation for existing subscribers to action the change swiftly.
The Discovery+ Drawcard
Interestingly, it seems as though the merging of some content from the Discovery+ platform is proving a major drawcard, too. While Warner Bros Discovery initially intended to merge the Discovery+ and HBO Max platforms for all customers, they later announced that they would leave Discovery+ as a stand-alone package, and instead incorporate some of the Discovery+ programming onto the (then) HBO Max service as an upgraded perk. And they meant it. Max is running more Discovery+ programming than actual HBO series or episodes. It’s working well for them. Currently, about 20% of Max’s watched programming is drawn from the Discovery+ banner, especially their true crime shows.
What has this meant for Discovery+ itself? They have lost some subscribers, most making the switch to Max. However, the migration is said to be in line with what they anticipated. At the last reliable figures we have, the combined platforms accounted for 97.6M subscribers. WBD also surprised Wall Street with better-than-expected profits from their streaming arm in Q1 this year, a very positive sign overall.
However, there has been one hiccup- the now-notorious ‘creator credit’, amalgamating credits for directors, producers, and writers together on-screen. Not only does that actively violate DGA guidelines for how billing must be conducted, it managed to offend many of those affected. However, it has been promised this will be rectified going forward.
For now, Max remains available at similar pricing to HBO Max, namely $15.99 per month without ads, $9.99 for the ad-supported tier, and a new ‘Ultimate’ option on sale at $19.99 per month. This allows for 4k resolution, four concurrent streams, Dolby Atmos sound, and 100 offline download slots. Discovery+ remains available for $4.99 ad-supported, or $6.99 without ads.
Warner Bros Discovery passed through a period where they didn’t seem all that sure what to do with the two streaming platforms inherited through their merger last year. It certainly seems that the hybrid premium model they’ve chosen is working for them. Now let’s see how the long-term performance works out for them.