The entertainment world is still reeling from the news that Paramount has swooped in and purchased Warner Bros. Pictures, effectively ending Netflix’s bid for the legacy studios. Obviously, there are a lot of questions on Hollywood’s mind, including the potential job cuts and contraction that comes with yet another mega-merger. There’s also the question of what the entertainment landscape will look like if this merger goes through, particularly given that HBO Max and Paramount would be under the same umbrella. Similar questions were raised when the Netflix/Warner Bros. merger seemed like a done deal, but HBO Max has a few advantages working in its favor.
For starters,HBO Max has far more subscribers than Paramount+.Per IndieWire, HBO Max has 131.6 million global subscribers, while Paramount+ has 79 million. Looking at those numbers, it only makes sense that Paramount would want to keep HBO Max around as its main streaming arm, especially with the massive library that the streamer has at its disposal. Yet there are other avenues that the studio could take, and they’d radically reshape the streaming landscape, not to mention the entertainment business itself.
HBO Max & Paramount+ Could Merge Into a Single Streaming Service
The easiest route that Paramount could take with HBO Max and Paramount+ is to merge them into a single streaming service. It’s not unprecedented, as Disney+ and Hulu are looking to merge into a single service by the end of the year. The House of Mouse underwent a mega-merger of its own in 2019 when it purchased 20th Century Fox, and it’s not hard to imagine that Paramount CEO David Ellison would use the same playbook and make Paramount+ a hub on HBO Max’s interface. It would be the most efficient way to push Paramount+’s original movie and TV projects while also tapping into the prestige of the HBO brand.
Another factor in favor of an HBO Max/Paramount+ merger is the sheer number of franchises Paramount wants to utilize. From DC Comics to Harry Potter to Game of Thrones, there’s no shortage of intellectual property under the WB umbrella. Said intellectual property could boost Paramount’s profile, especially since most of its prominent franchises are in flux. TV-wise, Paramount could also use a win that doesn’t come from Star Trek or Taylor Sheridan, and HBO Max’s shows carry the kind of prestige that not only draws in audiences but also wins awards.
Paramount Buying Warner Bros. Is the Next Step in an Extremely Worrying Hollywood Trend
As movie studios get bigger and bigger, things get worse for everyone else.
It’s Possible that Paramount Might Ditch Paramount+ For HBO Max
If Paramount doesn’t merge HBO Max and Paramount+, it’s more than likely that one of the cost-cutting measures the new Paramount/Warner Bros. regime will take is to delete one service and keep the other. HBO Max will more than likely win out; between its larger subscriber base and a more appealing library of content, it has everything Paramount wants. Paramount+, on the other hand, has yet to turn a profit, as it lost Paramount nearly $500 million dollars. Northwestern University professor Rick Morris also pointed out the grim reality that Paramount is deep in debt and will be taking immense cost-cutting measures:
“Debt is debt. Debt will stop them from taking new initiatives, from investing in content, and it’ll take a period of time to work off. And many companies fail at working off the debt, and that is part of the reason that Warner Bros. is for sale.”
Paramount might also be looking to use HBO Max as a showcase for its new stable of talent. In the weeks leading up to its acquisition of Warner Bros., the studio signed multi-year deals with Stranger Things creators Ross & Matt Duffer, Jon M. Chu (Wicked: For Good), and Dan Trachtenberg (Predator: Badlands). The timing couldn’t have been better, as Taylor Sheridan is primed to leave Paramount for a more lucrative deal at Universal. Together, these filmmakers not only provide enough talent to fill Sheridan’s absence but will also drive more subscribers to HBO Max.
The Paramount/Warner Bros. Merger Could Affect Other Paramount Assets
Paramount+ isn’t the only streaming service whose future is up in the air. There’s also the matter of Pluto TV, the FAST (Free Ad-supported Streaming Television) streaming service under Paramount’s umbrella. While Pluto TV has its own wide-ranging slate of free programming, The Hollywood Reporter writes that it’s facing some struggles, including a potential sale. If Paramount is considering cost-cutting measures, it could shutter Pluto TV, which would be a shame, as the channel could support Warner Bros. TV across its various channels. Pluto absolutely would host a Harry Potter channel or a channel dedicated to DC Comics films and TV shows.
Another Paramount asset that’s up in the air is Showtime. The cable channel was folded into Paramount+, but is there really a need for it when HBO exists? HBO and Showtime were rivals for years, though it’s clear that HBO has had more staying power. This could finally be the excuse Paramount is looking for to shutter the Showtime brand, though most of Showtime’s series would more likely continue as originals under HBO Max or simply transition to another streaming service, like Shameless.
HBO’s Head Honcho Isn’t Sure about the Future of HBO Max
The Paramount/Warner Bros. merger has led to a flood of emotions online, as many in entertainment are unsure about the future. One of them is HBO chief Casey Bloys, who gave THR a hazy response last November when asked about the future of HBO Max:
“It’s kind of a waste of energy, because I don’t know what’s going to happen… I’m obviously very proud of what we’ve done at HBO and HBO Max. I would like to see that continue…We’ve all worked at HBO for a long time. I’m proud of our track record, but you have to go into these processes with an open mind. And a lot of it is out of our hands.”
While the merger has yet to be approved, it’s pretty clear that if it does, the media landscape will be irrevocably changed. HBO Max could potentially survive that change — after all, this isn’t the first time the streamer’s fallen under different ownership. But the question remains: what will it change into?
