Streaming services Discovery+ and HBO Max will become one service after Discovery Inc. and AT&T Inc.’s T -1.25% WarnerMedia complete their merger, Discovery’s finance chief, Gunnar Wiedenfels, said Monday.
The two streaming services will likely be bundled immediately after the corporate merger, which is expected to close as soon as next month and will form a new business called Warner Bros. Discovery, Mr. Wiedenfels said at a conference in Florida organized by Deutsche Bank AG, but the two offerings will likely be combined into one product down the road.
Mr. Wiedenfels suggested the bundle could include a single sign-on for both services and share some content, but ultimately the goal would be to combine the platforms into one app. He said he expects the combination to take several months, as the company tries to make the transition as smooth as possible for current users.
“The main thrust is going to be harmonizing the technology platform, building one very, very strong combined direct-to-consumer product and platform. That’s going to take a while,” he said.
Mr. Wiedenfels’ remarks are the most specific indication offered yet of what the company plans to do with the two streaming platforms after the merger closes. Mr. Wiedenfels was previously appointed to lead the integration of the two companies by Discovery Chief Executive David Zaslav.
Discovery+, which launched at the start of last year, currently costs $4.99 a month with ads or $6.99 without ads. HBO Max also offers two pricing tiers, an ad-supported version at $9.99 a month and an ad-free service at $14.99 a month.
Mr. Wiedenfels didn’t say Monday how much a combined app might cost, but said the company will likely offer both ad-free and ad-lite options. He noted that streaming rival Walt Disney Co. , which said earlier this month that it plans to roll out a cheaper, ad-supported offering, is pursuing the same strategy.
The combined Discovery and HBO app would merge HBO Max’s more premium, male-skewing positioning with Discovery’s more female-leaning position, Mr. Wiedenfels said. He added Discovery’s content provides daily-viewing appeal while HBO Max drives sign-ups with blockbuster releases.
“The acquisition power of HBO Max combined with the retention power of the Discovery content, I think, is going to make for a blowout D2C product,” he said.
Discovery+ had about 22 million world-wide subscribers as of the end of 2021, the company said. HBO Max, along with the HBO television network, had some 73.8 million global subscribers by the same time.
Write to Will Feuer at [email protected]
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