This is a question that many people are asking as the launch of HBO Max nears. In this article, we’ll look at what we know about Discovery Plus and HBO Max and determine whether these two services are complementary. Stay tuned for more updates as they become available!
With so many customers preferring to get Discovery Plus with VPN, there is now confusion about whether fans will be watching a new Discovery Plus or a new HBO Max all in one app.
The Discovery Plus and HBO Max streaming services will soon be combined into a single app and streaming platform. It is unknown which app will “win” and be the app that the other app lives inside, nor is it known whether either app will. We believe Discovery Plus should relocate to HBO Max, but we will discuss the reasons for this decision in a subsequent section.
In either case, the greatest streaming service is in for significant overhauls in the near future (HBO Max). Since March of this year, the possibility of Discovery Plus and HBO Max coming together has been discussed, and subsequent events have caused many people to worry about the possibility of a nightmare scenario in which HBO Max is discontinued and replaced with an HBO tab within Discovery Plus.
The Cost of the New App After Discovery Plus and HBO Max Meager
This is likely to be the most difficult challenge for almost everyone concerned. If you wanted to avoid commercial interruptions while watching Discovery Plus and HBO Max, it would cost you $21.98 a month to subscribe to both services individually. The combined cost of the two ad-supported versions is $14.98 per month.
Things become more confusing because members of Discovery Plus pay significantly less than members of HBO Max do – $4.99 to $6.99 per month against HBO Max, $9.99 to $14.99 per month. The quarterly earnings call for Warner Bros. Discovery mentioned that the company intends to let Discovery Plus members stay within their original pricing for a while.
Netflix’s new top price is currently $19.99. Because of Netflix’s recent price increase, we believe the new combined app shouldn’t charge more than $19.99 per month for its ad-free plan. Also, they should consider reducing the cost of the ad-supported plan to perhaps $12.99 per month.
In light of this, Warner Bros. Discovery should maintain the bundled service at a price close to $14.99/month. During their conference call, WBDdisclosed that, according to their estimates, just 4 million users subscribe to both programs. All of this points to the fact that users of HBO Max, who are among the highest-paying customers, are not interested in paying a higher rate for Discovery Plus.
There is a possibility that this is only a test, but HBO Max will soon be adding some of the same material that is found on Discovery Plus. HBO Max will begin airing programming from Joanna Gaines and Chip and their Fixer Upper-inspired Magnolia Network in the coming months. This could serve as a test to determine how interested the audience of HBO Max is in the content pool offered by Discovery Plus.
In addition, we know that the data for the first quarter imply the scales are strongly loaded in favor of HBO Max. At that time, there were reportedly 76.8 million subscribers worldwide for HBO and HBO Max and around 24 million subscribers for Discovery Plus.
This portrays a picture in which HBO Max approaches the limit of what people are prepared to pay for a service, which might be seen as a positive development. On the other hand, this hints that HBO Max is the superior service, given that it can convince more members to spend a higher monthly fee.
Further, this means there will be tiers. The Discovery Plus and HBO Max services will have a premium entry-level that does not include advertisements. Still, they will also have an ad-supported plan, which WBD refers to as an “ad-lite” plan in their Q2 Earnings presentation.
A free third tier will also be available, and it will be denoted by the word FAST, an acronym for “Free Ad-Supported Streaming Television.” Many people have not come across this abbreviation before. It is designed to increase the interest of potential customers and encourage them to try out the product. There will also be a higher tier that includes sports-related programs.
When is the App Meager Going to Take Place?
During the second quarter earnings call for Warner Bros. Discovery, it was revealed that the ‘global product rollout’ is expected to occur in the United States in the summer of 2023, according to the announced plan. This time frame makes a lot of sense given the current state of affairs, as there is currently no advertised service ready to roll out. For this reason, WBD not only needs to locate a solution to the problem of its service and app merging, but it will also need to devote a significant amount of effort to market this solution.
The new service will be introduced to countries in Latin America the following fall, the countries of Europe at the beginning of 2024, those in Asia-Pacific in the middle of the next year, and then others will be served the following fall.
Why are Discovery Plus and HBO Max Becoming One?
The management at WBD believes that having only one streaming service will provide them with the greatest opportunity for success in the future. At the Deutsche Bank 30th Annual Media, Internet & Telecom Conference, former Discovery CFO and current CEO of Warner Bros. Discovery Gunnar Wiedenfels remarked that one of the most valuable things they believe in is a combined product, contrary to having a bundle. He also mentioned that they are confident that the depth and breadth of streaming will lead to an amazing customer value proposition.
On the Q2 earnings call for WBD, this point was brought up again when CEO and President David Zaslav mentioned that one of their three priorities is to function as one united organization and to be the greatest entertainment company in the world.
What are the Concerns for Discovery Plus and HBO Max Meager?
The most significant worry customers presumably have is that they will be required to pay a higher price for content that is irrelevant to them. As was discussed, although some people fit into the Venn diagram depicting interest in Discovery Plus and HBO Max, this represents a relatively small percentage of the total population.
The creative community is not off to a good start to start the year. The continuations of Scoob! and Batgirl has been canceled, and six of Max Original’s films have been erased from existence. In addition, there is no longer a guarantee that new movies will be available on HBO Max 45 days after they have debuted in theaters. Those keen will likely be surprised how television shows and films could have been allowed to degrade during David Zaslav’s tenure.
During the second quarter results call for Warner Bros. Discovery, Chief Financial Officer Gunnar Wiedenfels said that the company plans to reduce the amount of material aimed toward children and animation “without an acceptable investment case against them.” To put it another way, animated content that is not expected to be popular will not be developed.
As long as the desired shows continue to be offered and the cost does not significantly increase, the remaining offers could be considered acceptable. When will we get further information? During the earnings call, we were informed that we should anticipate more details to be provided at the Investors Day Event that will take place at the end of the year.