Warner Bros. Discovery's choice to remove HBO from its flagship streaming service is rational, but it also highlights industry tensions.
by the flood of Discovery's reality TV programming set to join the platform, such as "Dr. Pimple Popper," "90 Day Fiance" and various HGTV shows that more readily serve as background TV than fare for office water-cooler conversation.
The company's reasoning is rational. HBO appeals to a certain audience, but also doesn't appeal to a certain audience. HBO fans won't unsubscribe from the service in response to the name Max, but some people who were scared off by HBO may now sign up once the adult brand has been obscured by the deluge of distinctly un-HBO content coming to the service.
This would be the end of the story if Warner Bros. Discovery's stated goal was to maximize the number of subscribers who sign up for Max.. But according to Zaslav, that's no longer the priority. "We are relentlessly focused on creating great content and monetizing in every way possible," he said.With its new streaming strategy — and Max at the center — Warner Bros. Discovery is hedging its bets.
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