When the HBO Max launched in 2020, it is designed to be the streaming home for everything from Warner Bros. , DC and HBO, with lots of things for kids to see too. Now, suddenly, HBO Max is starting to look a little different.
The service, which like CNN is owned by Warner Bros. Discovery, has been scrapping shows and movies as it cuts costs, shifts strategy and prepares to merge next summer with Discovery+ its sister streaming service.
So, what is happening? The media landscape is definitely different from the early days of the pandemic, and HBO Max remains in flux.
Why is HBO Max taking away the shows it has licensed or owns?
There are a multitude of reasons why HBO Max is removing shows like “Generation,” “Infinity Train,” “Vinyl” and “The Not-Too-Late Show with Elmo.”
But the causes fall into three main areas: cutting costs, changing the overall content strategy, and eliminating shows that subscribers weren’t watching.
Wait, cost cutting? Does HBO Max not have this content?
Just because content lives on a service doesn’t mean it’s free after sunk costs.
Streaming services must still pay fees to a production’s casts and crews, and those costs add up. HBO Max will save “about $100 million a year” after removing the shows, according to a source familiar with the decision.
Warner Bros. Discovery told investors it will cut a total of $3 billion in costs at the company, so every little bit helps.
“Keeping titles on one platform comes at a cost,” Julia Alexander, Chief Strategy Officer at Parrot Analytics told CNN Business .
“Does a title bring more value to the platform than its cost? If the answer is no, and especially if that headline is a low-engagement headline, which many of them are, removing headlines can benefit a company’s bottom line.”
But isn’t the purpose of streaming to have “everything in our catalog”?
The services of streaming trained consumers to believe that everything will be available forever in a service, especially original content. This is not always the case.
Other companies also pull content from their libraries. It’s part of the business.
What Warner Bros. Discovery have to say about this?
“As we work to bring our catalogs of content together on one platform, we will be making changes to the content offering available on HBO Max and Discovery+,” an HBO Max spokesperson said. CNN Business . “This will include removing some content from both platforms.”
Didn’t HBO Max cancel “Sesame Street”? I think I read this somewhere
No, the Big Bird, Elmo and company show is still alive. However, the company reportedly pulled 200 episodes of the beloved series.
Why did HBO Max do this? I thought streaming services wanted more kids’ content, not less
Children’s programming is vital to the health of any streaming service, but it requires a big investment, according to Alexander.
“Investing in children’s programming, especially live-action, means being fully invested,” she said. “You can’t just have a few shows and expect it to be enough. It requires a multi-year plan.”
This also goes for animated content, which has been in the focus of the cut by HBO Max lately. Even a new animated series based on Batman, one of the company’s most important and profitable brands, has been scrapped.
“Right now, WBD’s two top priorities are driving growth and reducing costs,” says Alexander. “Children’s programming is an area in which major players like Netflix, Apple, Disney and Amazon are already investing, while YouTube holds most of this audience’s attention.”
Ultimately, HBO Max wants to focus more on strengths like HBO’s adult dramas and films at Warner Bros., but will likely reinvest in kids’ content again at some point.
What does this mean for the future of HBO Max?
Time will tell.
David Zaslav, the new CEO of Warner Bros. Discovery, is focused on making money from traditional revenue streams such as TV ad revenue, cable TV fees and box office totals, as well as streaming.
This is a change from his predecessor Jason Kilar, who bet the future was in streaming and put most of WarnerMedia’s eggs in that basket.
The streaming world is evolving and everyone is still figuring out their future.
“It’s not a game of Kilar being right and Zaslav wrong, or Zaslav being right and Kilar wrong. It’s a matter of prioritization,” Alexander said. “The future of streaming is still being determined, but it’s fundamentally where it’s all going.”
Cable is shrinking, while broadband is expanding, and the future of streaming won’t be the same for everyone, she added.
“There will be premium services like HBO Max, as well as free ad-supported platforms like Pluto TV, as well as licensing programs for other players in the linear and streaming space,” Alexander points out. “And all this in conjunction with theatrical releases – not a total replacement for that.”
The power of consumer choice will play a big role in deciding what the next era of streaming — and therefore HBO Max — will be, she said, adding that “the audience is, and always has been, king.”
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
