Paramount to combine HBO Max and Paramount+
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Paramount Skydance on Monday said it plans to combine its Paramount+ streaming service with Warner Bros. Discovery's HBO Max after the two companies complete their merger.
Why it matters: With over 210 million subscribers, the combined streamer would have better scale to rival Netflix, which has 325 million global paid subscribers.
Zoom in: On a call with investors Monday, Paramount chairman and CEO David Ellison said growing the company's direct-to-consumer products "will be essential to the success of the combined company."
- The combined streamer, which will have a presence in over 100 countries, will be powered by "a complementary portfolio of fan favorite series and franchises, premium sports and trusted news brands," he said.
Zoom out: Paramount's deal to acquire WBD is contingent upon regulatory approvals in the U.S. and abroad.
- Regulators likely won't be as concerned about these two streaming assets coming together as they would if Warner Bros. opted to combine with Netflix, but executives are clearly trying to make sure they address any issues.
- Ellison said "combining the streaming services will enhance competition and deliver viewers a truly compelling offer."
- The company is "confident," he noted, that "along with significant investment and technology and innovation, we can provide consumers significant value in a compelling and engaging platform."
Reality check: The bigger concern for regulators may be how the combination of two major movie studios, Paramount Pictures and Warner Bros. Pictures, could impact content distribution.
- Ellison reaffirmed Paramount's commitment to distributing at least 15 theatrical films per year per studio for a total of at least 30 films annually.
- He said HBO, "a crown jewel" in the entertainment business, will "continue to have the resources and independence to do what it does best."
