Apr 13, 2023

Key Factors in Warner Bros. Discovery's Decision to Rebrand HBO Max

Warner Bros. Discovery (WBD) has announced key details of its two streaming platforms, HBO Max and Discovery+, which it plans to rebrand as Max. Executives met with the press on Wednesday to introduce the new joint platforms' price points, new programming, and differences from their current services.

According to WBD executives, animation was a key factor in the platform's name change to Max, as they believed that the HBO name was associated with edgy, adult-oriented content and parents shied away.

It remains to be seen if the cartoons that HBO Max dropped last year will appear on Max, but a larger catalog will help justify the higher fees for the new service, detailed below. [Warner Bros. Discovery announced plans for Max, a new streaming platform that will integrate its two streaming services, HBO Max and Discovery+. The announcement was made at a press event, where the company also detailed its upcoming projects. The new platform will first launch in the US on May 23.

Reason for the change - According to JB Perrett, WBD's president and CEO of Global Streaming & Gaming, the HBO Max brand was keeping families away from the platform. He argued that because of HBO's reputation as an adult-first network, "it is not where parents are most eager to send their children." Yet Warner Bros. Discovery has some of the industry's best-known children's characters, animation, and brands. Not surprisingly, the category has not reached its true potential on HBO Max."

During a press Q&A at the event, other executives also spoke about the desire to keep the HBO name as synonymous with "premium" content, rather than as a catch-all for everything WBD wants to put on its streaming platform.

Max's New Features - According to Warner, the new platform will receive more than 40 new movie and TV titles each month and will feature a large influx of Discovery content at launch, including programming from networks such as HGTV, Discovery Channel, Food Network . Perret also said the new platform will be easier to use and will feature simplified navigation tools. He also teased account personalization and an enhanced children's experience. There will also be a new pricing structure, with three tiers for prospective subscribers to choose from.

The new tiers are - prospective subscribers will have access to three versions of Max:

Many cable subscribers who currently get HBO Max as part of their plan will get it once Max is launched. Current Max distribution partners include AT&T, Cox, Cricket, DirecTV, Dish, Hulu, Altice USA's Optimum, Amazon's Prime Video Channels, Charter's Spectrum, Verizon, Comcast's Xfinity, and others.

What this means for existing HBO Max stand-alone customers - subscribers will have to pay more for the best-looking content. After the switch, 4k Ultra HD content will only be available to Max Ultimate Ad-Free subscribers. Currently, HBO Max's $15.99/month ad-free plan includes a selection of 4K programming.

HBO Max just raised its prices in January, but how does it justify raising them again-Perrett says he believes the service's new price point offers "incredible value for everything you get." He continued:

There is no streaming service in the world that has a higher end consumer than HBO Max. So our idea is not to try to take more money out of the wallets of people who can't afford it. Rather, let them listen to the music at a reasonable price. And if you want higher quality, if you want all the bells and whistles, and if you can afford it, we've got a price for you.