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This Streaming Platform is Making Major Moves

August 5, 2022
What do ‘Friends’, ‘Beat Bobby Flay’, ‘Dr. Pimple Popper’, and ‘Harry Potter’ have in common? 

These series will live together on a single streaming app, the merged birth child of HBO Max and Discovery+…each bringing quite different flavors to the table.
Warner Bros. Discovery (WBD) must see the writing on the wall. 

While HBO Max is the 3rd largest single streaming platform from a userbase perspective, LikeFolio data confirms its growth and viewership rates are slipping while cancellation mentions rise….and sister channel, Discovery+ finds itself in the same boat.
We’ve been keying into rising subscription fatigue mentions for some time now.

This trend continues to tick higher after tempering during the pandemic.

But this move to consolidate by Warner Bros. Discovery could be a strategic long-term move.

On its earnings call yesterday, the company highlighted a shift in its vision for streaming vs. the industry standard. Over the last decade, streamers have collapsed all windows into streaming, overpaying/overinvesting in content, and offering it all for a low price.

But WBD believes streaming is a bit more nuanced…and more importantly has a segmented audience. And in a crowded market, catering to each segment is critical.

Management noted, “The focus of our streaming strategy is consumer choice. We believe there are multiple global consumer segments in streaming, just like there have been for decades in traditional television. Some who are willing to pay a premium for an ad-free experience, others who are more price-conscious and prefer to pay less with limited advertising, and a sizable third group who will not pay a subscription fee and only want to enjoy ad-supported entertainment.”

The new single offering will also cater to entire households, offering something for everyone so consumers are less likely to make a cut.

We’ll be following along and tracking in real-time to see if this move pays off…

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LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.

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