Adding more TV content to streaming services may not naturally warrant growth.
HBO Max's subscription rate increased significantly in 18 months after WarnerMedia decided to combine HBO Now's premium content with Turner's cable programs to create HBO Max. However, first-run movies like Wonder Woman: 1984, Godzilla vs. Kong, and Zack Snyder's Justice League were more likely the “key” for subscriber growth, rather than the TV shows, contends the article.
While HBO and HBO Max’s subscribers grew from 36.3 million to 46.8 million by the end of 2021, this does not illustrate that combining premium and regular TV shows into packages leads to growth. However, more platforms are following suit. WarnerMedia is proposing to merge HBO Max and Discovery+ in Q2 of 2022, with three “funnels” of varying ad-tiers across price points to appeal to more consumers.
Even Paramount Global is planning to offer its Paramount+ members access to Showtime as a bundle. Offering a lower bundle price of Paramount+ and Showtime can attract more subscribers. Most customers sign up for Disney+, Hulu, and ESPN+ bundle rather than the individual services, according to Disney CEO Bob Chapek.
[4 minute read]