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…