HBO Max Rebrand Sparks Mass Exodus: WB Plunges into $124B Total Loss, Sheds 18M Subscribers

Summary

Warner Bros. Discovery has experienced significant losses in its second quarter, with a loss per share of 51 cents, more than the expected 38 cents.

The direct-to-consumer division, comprising HBO, Max, and Discovery+, experienced a decline of 1.8 million subscribers. However, despite this setback, there is a positive outlook regarding the current engagement of subscribers.

Following the merger of Warner Bros. and Discovery in May 2023, there has been a successful incorporation of content from the Discovery+ streaming service into HBO Max, leading to the rebranding of the service as Max.

Warner Bros. Discovery has experienced significant losses following the rebranding of HBO Max. The streaming service, which includes original shows like And Just Like That... and Peacemaker, as well as the regular HBO library, was launched in May 2020. After the merger of Warner Bros. and Discovery on May 23, 2023, content from Discovery+'s library was integrated into HBO Max, which was subsequently renamed Max.

According to TheWrap, Warner Bros. Discovery has reported disappointing results for the second quarter of 2023. While it was anticipated that WBD stocks would decrease by 38 cents per share, the actual loss per share amounted to 51 cents, with revenue of $10.36 billion. The direct-to-consumer division (HBO, Max, and Discovery+) also experienced a decline of 1.8 million subscribers. However, the sustained engagement from existing subscribers offers hope for future prospects in that area.

The Differences Between HBO, Max, and Discovery+ Explained

HBO, the oldest member of the direct-to-consumer division, set a trend in 1972 by offering ad-free, unedited movies and later launching its own original series. Today, HBO is renowned for its high-quality and popular shows such as Sex and the City, The Sopranos, Game of Thrones, and The Last of Us 2023.

With the introduction of HBO Max, numerous HBO-related streaming services, including HBO itself, HBO Go, and HBO Now, were available. Initially, HBO Now allowed non-subscribers to stream HBO's library, while HBO Go provided streaming access to HBO subscribers at no additional cost. HBO Max combined the features of both services and offered its own original content, as well as the libraries of HBO and WB. Furthermore, HBO Max continued to provide the functionalities of HBO Go and remained free for HBO subscribers.

Discovery+ recently became part of the streaming family, offering series from popular Discovery properties like HGTV, TLC, Food Network, Animal Planet, and the Discovery Channel. Initially, there were plans to fully integrate Discovery+ into HBO Max, but both services were kept separate. As a result, some Discovery programming was incorporated into Max's content lineup after the merger. This perplexing strategy may have contributed to the significant loss of subscribers in recent months.