March 14, 2022
Subscription streaming video platforms HBO Max and Discovery+ will be combined following the official consummation of Discovery’s $43 billion minority stake, majority control deal for WarnerMedia with current parent AT&T, Discovery CFO Gunnar Wiedenfels told an investor group.
Speaking March 14 at the Deutsche Bank 30th Annual Media, Internet & Telecom Conference, Wiedenfels appeared to answer the long-running question about how Discovery would accommodate the two streaming services under the new Warner Bros. Discovery media company moniker.
With the merger set to be completed in the second quarter of this year, Wiedenfels said the goal was to meld the two platforms with a combined paid subscriber base of around 100 million into one service. In the meantime, the services would likely be bundled as management figures out the best way to make the combination happen.
“One of the most important items here is that we believe in a combined product as opposed to a bundle,” Wiedenfels said. “The question is, in order to get to that point and do it in a way that’s actually a great user experience for our subscribers, that’s going to take some time. Again, that’s nothing that’s going to happen in weeks — hopefully not in years, but in several months — and we will start working on an interim solution in the meantime.”
Wiedenfels, who will transition to CFO of the new company, joins Discovery CEO David Zaslav, who will oversee Warner Bros. Discovery operations. Current WarnerMedia CEO Jason Kilar is expected to transition out of the company.
Wiedenfels contends Discovery+, which costs $4.99 per month with ads, $6.99 without ads, and HBO Max, which cost $9.99 with ads, $14.99 without ads, would initially offer a single sign-in for subscribers with each service offering select content on the other’s platform. He did not disclose any new pricing for the combined services.
“In order to get to that point and do it in a way that’s actually a great user experience for our subscribers, that’s going to take some time,” Wiedenfels said. “Building one very, very strong combined direct-to-consumer product and platform, that’s going to take a while.”