Warner Bros Discovery ( WBD Quick Quote WBD - Free Report) announced that it is planning to launch its streaming platform in the upcoming spring 2023 under the name Max. This streaming platform, which is currently referred to as Beam internally, is a merger of two streaming services, Warner Bros’ HBO Max and Discovery’s Discovery Plus. Though Max is the front-runner, other names are still being considered by the company's lawyers and senior executives. The new streaming app, when launched, will have different hubs, which are likely to include DC Comics, Discovery, HBO and Warner Bros, giving users easy access to the brands they want to watch. What Plans Does Warner Bros Have for Its Streaming Platform?
Warner Bros. Discovery has recently been making amendments to its streaming services to increase profits.
The company has cut back on spending on HBO Max original and has also canceled projects like the new Batgirl movie. These cost cuttings are expected to help Warner Bros in rebranding HBO. The rebranded HBO, which is anticipated to be a sub-brand under the newly launched streaming platform, is focused on providing diversified content to its viewers, which will include reality TV from Discovery, news documentaries from CNN, movies from Warner Bros., kids programming and live sports as well. This should draw viewers from all demographics and various genres and boost the company’s subscription rates.
Warner Bros has released its slate of films for next year that includes
The Flash, Shazam, Doom 2, Aquaman, Wonka, Blue Beetle, DC's first superhero movie starring a Latino character, and more. Besides this, Robin Thede's Emmy-winning HBO comedy series, A Black Lady Sketch Show, has begun production on its fourth season and the award-winning cast of Succession will be returning next spring for its fourth season. This builds a projection of $12 billion in adjusted EBITDA for the year 2023. The company is aiming to reach $1 billion in earnings in the streaming division by 2025. Warner Bros Faces Heavy Competition in the Streaming Industry
Streaming services are gaining huge traction from viewers these days. Per
Future Market Insights, the video streaming market size is expected to grow from $73 billion in 2021 to $750 billion by 2031. As this signifies a great opportunity, this market is home to many players, which creates stiff competition for Warner Bros Discovery. The major competitors that this Zacks Rank #3 (Hold) company has in the streaming division are Netflix ( NFLX Quick Quote NFLX - Free Report) , Walt Disney ( DIS Quick Quote DIS - Free Report) and Paramount ( PARA Quick Quote PARA - Free Report) .
The share price of Warner Bros Discovery has declined 52.6% year-to-date while that of Netflix, Disney and Paramount fell 48.1%, 38.1% and 35.4% respectively in the same time frame. The Zacks
Consumer Discretionary Sector declined 32.8% year-to-date.
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The lineup on Netflix looks exciting as it includes
Emily in Paris season three, Roald Dahl’s Matilda The Musical and many more releasing in December. The Disney+ original documentary If These Walls Could Sing hits the streaming platform on Dec 16, featuring a star-studded lineup of interviewees that includes The Beatles members Paul McCartney and Ringo Starr. Both Netflix and Disney are set to launch their ad-tier subscriptions by the end of this year. These low-cost subscription plans are expected to further increase competition for Warner Bros. Paramount announced the revival of the popular FBI drama Criminal Minds exclusively on Paramount+. This is expected to pay bigger returns to Paramount+ and bolster its top line.