A Paramount merger could be the end of HBO Max
Out of the frying pan but into the fire: this is the scenario facing HBO Max following Netflix’s sudden reversal in its bid for Warner Bros. Discovery.
While Paramount is now ready to buy Warner Bros. and its various studio and streaming properties, all eyes are on what could possibly happen to HBO Max and the iconic HBO brand.
Speaking on an investor call Monday morning, Paramount CEO David Ellison made clear that he intends for HBO to stick around and “operate independently,” adding that he personally relies on HBO. Game of Thrones among his favorite HBO shows, according to Variety. “Our view is that HBO should remain HBO.”
At the same time, Ellison said that “we plan to bring the two services together” and that “by bringing the platforms together, all of our content will be able to reach an even wider audience than we could on a standalone basis.”
Although Warners and Paramount have agreed to general terms of a merger, the deal remains subject to federal regulators.
The deal between Warners and Paramount was announced Friday evening, stunning Hollywood and the streaming industry. But even though the players have changed, the game remains the same: one streaming swallows up another, leading to fewer competitors and – almost certainly – higher streaming prices.
It’s still far too early to tell what a combined Paramount+-HBO Max streaming service would look like or what it might cost.
During Monday’s investor call, Ellison didn’t say whether HBO Max would be swallowed up by Paramount+, the other way around, or somewhere in between. He also didn’t reveal (as Variety notes) whether there would be an “HBO Max” tile in the new combined streamer.
A more likely scenario would be a prominent HBO brand, in the form of a tile or row, within the new Paramount streaming app.
Beyond the presentation issues, the bigger problem is that following a successful Paramount-Warners merger, streamers who want to watch Game of Thrones, The Last of Usor other HBO shows should also pay for Landman, Lioness, Tulsa King, 1923and other Paramount+ originals, whether they like it or not.
The price for HBO Max’s most expensive tier currently stands at $22.99 per month, while the top Paramount+ plan costs $14 per month. If the merger goes through, it’s easy to imagine a combined Paramount/HBO Max streaming service costing upwards of $30 per month.
Ouch.
