Warner Bros. Discovery Removes Linear Ballast to Focus on HBO Max Streaming

Warner Bros. Discovery is making big moves in the streaming world by splitting the company into two entities: Streaming & Studios and Global Networks. This decision aims to focus on the booming streaming business, with HBO Max taking the spotlight in 77 markets. This move mirrors what other companies like Comcast and Lionsgate have done, separating their cable and streaming divisions to prioritize streaming growth.

Matt Trickett from Ampere Analysis highlights the importance of this split for Warner Bros. Discovery to optimize HBO Max, expand into new markets, and produce premium content for its streaming platform. The linear TV division will still have a stake in Streaming & Studios, focusing on brands like CNN, HBO, and more, while taking on significant debt.

Streaming revenue will be the main driver for Streaming & Studios, with a strong emphasis on quality programming and local content. David Zaslav, head of the streaming services, emphasized the importance of premium content and local sports as the company’s key strategy. This shift will also help investors better understand the value of each new company.

Global Networks will manage U.S. sports rights, including popular events like NCAA March Madness and NHL games. This division may become an acquisition target in the future, potentially merging with Versant. The split is expected to maintain content supply between the two divisions, keeping the momentum of HBO Max going strong.

In the UK, changes are already happening with Eurosport channels moving to the TNT sports service as part of a larger strategic shift. Warner Bros. Discovery’s acquisition of TNT JV from BT raises questions about integrating premium sports services with HBO Max in the UK market. The future looks bright for Warner Bros. Discovery as they navigate the streaming landscape with HBO Max at the forefront of their plans.