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Warner Bros. Discovery and Amazon have inked a new distribution deal for HBO Max, returning the streaming service to Prime Video channels.
The deal undoes a key mission for former corporate entity WarnerMedia, which launched HBO Max in 2020 two years before merging with Discovery. Former WarnerMedia CEO Jason Keeler, who spent a long stint at Amazon earlier in his career, has centralized securing distribution for HBO Max as a stand-alone app on Amazon Fire TV devices. Targeted channels. WarnerMedia’s then-parent, AT&T, pursued Kilar’s strategy, with CEO John Stankey publicly opposing Amazon for what he said was a strong-arm strategy. The availability of HBO Max on Amazon was delayed for several months, costing new subscribers in the market access to the new streaming operation. Roku, another major streaming gateway, also faced a one-month delay in adding HBO Max after its launch due to Warner Media’s currency.
The term of the new contract was not specified in the official announcement, but sources familiar with the deal put it at five years.
Discovery+, which is slated to merge with HBO Max in spring 2023, has been on Prime Video channels since its launch in 2021. With more than 200 million members globally, the Prime program is a powerful driver of overall streaming viewership, and Amazon is driving more viewers to Prime Video with offers like NFL Thursday Night Football and the like. Lord of colors.
Under the Channels setup, Prime members can sign up for HBO Max for $14.99 per month. As with Apple and Google, Amazon’s large scale enables it to capture a large number of subscriptions for its partners with channels, but the parties share subscription revenue and customer data. There may be sticking points in the method. Earlier in the streaming era, programmers were willing to surrender a certain amount of money and data in the name of achieving scale, assuming it was worth trading.
Keller believed that building a true direct-to-consumer streaming business required control over vast amounts of consumer data to fine-tune the streaming service’s algorithms, customer experience and subscriber acquisition capabilities. . In 2021, when HBO Max exited the channels, WarnerMedia reported a loss of 5 million subscribers in the quarter. HBO Max now has 92.1 million subscribers, including linear HBO.
“We strive to offer consumers the best and widest selection of premium content available for their everyday viewing experience,” Prime Video VP Cem Sibay said in a press release. “With the addition of HBO Max again, customers can easily add this subscription and enjoy even more award-winning and fan-favorite entertainment on Prime Video.”
JB Perrett, CEO and President, Global Streaming and Games for Warner Bros. Discovery and Bruce Campbell, the company’s Chief Revenue and Strategy Officer, both played key roles in pushing the new deal. Campbell said WBD is “committed to making HBO Max available to the widest possible audience while advancing our data-driven approach to understanding our customers and best serving their viewing interests.” Extending.” WBD’s goal is to “delight customers with great content and continue to collaborate and innovate so we can best serve our customers,” Parrett said.
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