Benzinga -
- On Wednesday, Warner Bros Discovery, Inc (NASDAQ: WBD) will reveal plans for the new streaming service as envisaged in 2021 after combining the scripted entertainment of HBO Max with Discovery's library of reality and unscripted series.
- Warner Bros proposes to combine classic HBO series like "The Sopranos" and "Succession" with Discovery series like "Dr. Pimple Popper" and "Fixer Upper," the NY Times reports.
- The service, dubbed Max, will debut in the next month or two to help the firm remain relevant versus streaming players like Netflix Inc (NASDAQ: NFLX) and Walt Disney Co (NYSE: DIS).
- The streaming service will cost roughly $16 a month, the price of HBO Max currently.
- Warner Bros aims to offer several price tiers, including a less expensive one with advertising.
- Warner Bros had a rough opening 12 months, dumping projects and laying off thousands partly to help pay down an enormous debt load of about $50 billion.
- Entertainment companies are losing hundreds of millions on streaming services just as revenue from traditional cable TV is falling. Interestingly, Warner Bros Discovery owns more than a dozen cable networks.
- The Warner Bros reveal event will be just over an hour and feature no stars. The event will unveil the new service's name, marketing plans, technological upgrades, and some TV series and movie announcements.
- Warner Bros expects the streaming division to break even by next year and be profitable in two years.
- Warner Bros still has a subscriber goal for its streaming division of 130 million by 2025, up from the 96.1 million now trailing Netflix's current total of 231 million and Disney's 235 million subscribers.
- Parrot Analytics analyst Julia Alexander expects Warner Bros' move to help with time spent on the app as the company bets on unscripted programming to drive engagement.
- Higher engagement will help the company raise the price without fearing user churn and increase revenue from advertisers on the streaming service's lower-priced tier.
- Price Action: WBD shares traded lower by 1.56% at $15.16 on the last check Tuesday.