During Paramount’s initial investors’ call following their successful bid for Warner Bros. Discovery, CEO David Ellison announced that upon the merger, Paramount+ and HBO Max would consolidate into a single streaming offering.
“Over the next few years, we will be merging the streaming portfolios of both companies into one stronger platform,” Ellison stated during Monday morning’s conference call. “Collectively, the two platforms currently boast over 200 million DTC subscribers spanning more than 100 countries and territories globally.”
This integration marks one of the most significant developments to date within the streaming service competition.
That 200 million figure will almost certainly decrease once the services are combined, given the existing overlap in subscribers between the platforms. Paramount concluded the fourth quarter with 78.9 million direct subscribers, whereas Warner Bros. Discovery (WBD) reported 131.6 million.
For perspective: while WBD and Netflix were still in merger discussions, Netflix co-CEO Ted Sarandos informed lawmakers that 80% of HBO Max subscribers also held Netflix accounts. Netflix recently reported its own subscriber base exceeding 325 million.
The unified HBO Max-Paramount+ streaming entity will integrate the premier intellectual properties from both organizations—from HBO’s “Game of Thrones” and “The Sopranos” to Paramount’s “Yellowstone” and “Star Trek” franchises.
Ellison provided no name for the prospective unified streamer, but this move will almost certainly necessitate yet another rebranding for WBD’s streaming service, which only last summer transitioned to simply “Max” after two years, following earlier iterations like HBO Now and the original HBO Max.
As part of the acquisition, Paramount will also gain ownership of CNN, currently under WBD. During Monday’s call, Ellison assured analysts that Paramount has “no plans for any sales” regarding its cable television assets at this juncture, indicating no intention to divest those cable holdings.
Whether Ellison opts to retain CNN’s current streaming platform, CNN All Access, or fold its content into the new merged streaming service remains to be seen.
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