Skydance CEO David Ellison doubled down on his plans to mix HBO Max and Paramount+ into a single streaming service – sparking questions about how much the mega-streamer could price followers.
Ellison’s $81 billion merger of Paramount and Warner Bros. Discovery formally closed Tuesday, forming a new media behemoth called Skydance, after months of antitrust roadblocks.
In the “long term,” the company plans to “bring [HBO Max] and [Paramount+] together” as one streaming service,” the exec instructed reporters Tuesday on his first day operating the new Hollywood giant.
David Ellison doubled down on his plans to mix HBO Max and Paramount+ into a single streaming service. Noam Galai
“It’ll take a period of time to do that,” he added. “So I think in the immediate, you will see them operated separately,” with “bundling” choices obtainable “in the relatively short term.”
Ellison said the company expects to “accelerate how quickly we accomplish that goal,” thanks to developments in “AI technology and other things.”
He declined to remark further on the bundle choices.
The mixed streamer – which would merge the nation’s third- and fifth-largest providers – would boast about 200 million whole subscribers, according to Ellison.
By that rely, an HBO Max-Paramount+ hybrid would be on par with Amazon Prime, at the moment the second-largest streamer with roughly 200 million subscribers, and still below Netflix’s dominant 325 million clients.
During Tuesday’s press convention, Ellison famous a mixed platform will permit Skydance to “compete with the Disneys and Netflixes and Amazons and anybody in the world.”
It’s unclear how much the mixed service could price, and whether the company is planning to hike costs. It has already announced $6 billion in deliberate price cuts, including layoffs, though it has not specified which divisions will be hit.
A primary HBO Max plan with adverts at the moment prices $10.99 a month or $109.99 a yr. The premium, ad-free model prices $22.99 a month or $229.99 yearly.
The Paramount+ Essential plan with adverts prices $8.99 a month, while the Premium plan – which is ad-free and permits clients to stream CBS reside – prices $13.99 a month.
That means if the streamers’ price tags were mixed, a primary plan would price $19.98 a month and a premium subscription would price an eye-watering $36.98 a month.
“The White Lotus” Season 3 is obtainable on HBO Max. HBO
But it’s possible the company will take a related method to Disney+ and Hulu, at least in the short time period, by offering discounted bundle choices.
A standalone Hulu plan prices $12.49 a month with adverts or $21.49 a month without adverts, while a Disney+ plan goes for the same charges.
The widespread Disney+ and Hulu bundle, however, begins at $12.99 a month and goes up to $21.99 a month – just pennies more than clients pay for the particular person plans.
HBO Max is also included in a bundle with Disney+ and Hulu, but it comes at a much steeper price tag – beginning at $21.99 a month with adverts or $34.99 a month with no adverts.
HBO Max is home to widespread exhibits like “House of the Dragon,” “Succession” and “The White Lotus.” Paramount+ affords “Yellowstone” and its spin-off exhibits, along with “Landman,” “Criminal Minds” and “South Park.”
“Landman” is streaming on Paramount+. Emerson Miller/Paramount+
Ellison initially announced in March that the two streamers would be mixed if the merger achieved regulatory approvals – but company executives have been delivering combined messages.
Casey Bloys, who has been tapped as chief content material officer of Skydance and will lead the integration of the two streamers, last week said he expects the two platforms to stay separate with bundling choices – with no point out of a mixed service.
“I would say that I don’t want to comment on what is going to happen or anything like that, but I would point to the HBO Max-Disney bundle, which has been very successful,” Bloys said during Bloomberg’s Screentime occasion. “That would make a lot of sense.”
The Post has sought remark from Skydance.
