The entertainment sector is once again shaking up with news at Warner Bros. Discovery. The company, which joined forces in 2022, integrating a large portion of its film and television productions into HBO Max, is heading toward a new fragmentation. This decision raises concerns about the future of HBO Max users and traditional television users.
Similar to Comcast and its NBCUniversal division, Warner Bros. Discovery is preparing to create two separate entities. Although the provisional names are “Streaming & Studios” and “Global Networks,” these are likely to change before the separation is formalized. Throughout its history, Warner has changed its name several times.
The Future of HBO Max and TV Channels
This separation will bring changes for HBO Max, Discovery+, CNN, and the television channels linked to Warner. Although the full scope of these changes is not yet entirely clear, it is a reality that there will be adjustments.
As for HBO Max, it is not expected to lose any of its existing movies or series, beyond those it has already discontinued. However, its live sports offering could be reduced or require an additional subscription.
CNN’s live news content, on-demand programs, and documentaries could also no longer be available on HBO Max, moving to a separate CNN service operated by the television company.
It’s worth remembering that CNN’s live channel already requires an HBO Max Standard or Premium plan for access.
The outcome for subscribers will depend primarily on the number of movies, programs, and sporting events licensed between the two companies.
This reorganization could have been a real headache for the streaming service Venu Sports, as it would require the collaboration of five companies instead of four, but that idea was canceled in January, so thank goodness!
Reducing the financial burden
Apparently, the main reason for this move is the intention to alleviate its heavy corporate debt. According to Variety, “the bulk of the company’s current debt will be assigned to the television entity.”
The initial merger of WarnerMedia and Discovery Inc. accumulated more than $50 billion in financial obligations, and this spinoff is presented as a practical way for Warner executives to shift some of that burden to others.