By Daniel Arkin
HBO Max and Discovery+ will merge into a single streaming service, Warner Bros. Discovery chief David Zaslav announced in a second-quarter earnings report released Thursday.
The media corporation did not reveal a name for the new platform, which it said would launch in the US in the summer of 2023, with other regions to follow in 2024.
The current versions of HBO Max and Discovery+ represent a total of 92 million subscribers, according to the quarterly earnings report.
Warner Bros. Discovery expects to reach 130 million global subscribers by 2025.
The company is considering offering
a free, ad-supported version
of the platform, Zaslav confirmed.
HBO Max's ad-supported service currently costs $10 per month.
[They criticize the Hispanic accent of actress Ana de Armas when playing Marilyn Monroe]
Zaslav is trying to cut costs and save $3 billion.
That was the promise he made to investors after WarnerMedia and Discovery Inc. formally merged in April, creating one of the nation's largest media companies.
After the cancellation of
Batgirl
The change in streaming strategy was announced two days after news broke that Warner Bros.
decided to drop
Batgirl
and
Scoob!: Holiday Haunt
, films that were produced exclusively for HBO Max and approved by the previous corporate regime. .
This is how Leslie Grace reacted to the cancellation of the movie 'Batgirl'
Aug. 4, 202200:34
Batgirl
and
Scoob!
It will not be distributed on any streaming platform or released in theaters, apparently so the company can cut taxes on both projects and try to recoup production costs, according to Variety magazine.
"The decision not to release Batgirl reflects the strategic shift in our leadership as it relates to the DC Universe and HBO Max," a Warner Bros. Pictures spokesperson said in a statement, adding that
Batgirl
star Leslie Grace, is "
an incredibly talented actress and this decision is not a reflection of her performance
."
The move shocked Hollywood, where big studios rarely bury movies entirely.
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In most cases, movies that don't meet a studio's creative or financial expectations are sold to a streaming platform or quietly released in theaters without a marketing campaign.
In recent days, six films produced exclusively for HBO Max have appeared to disappear from the platform, including the Seth Rogen comedy
An American Pickle
and the COVID-19-era relationship drama
Locked Down
, starring Anne Hathaway and Chiwetel Ejiofor.
The reorganization of Warner Bros. Discovery comes at an uncertain time in Hollywood.
Netflix's financial woes have raised questions about the viability of the streaming business, with many executives concerned about the looming economic downturn.
For the return to the cinema
Zaslav's vision for the company represents a dramatic departure from that of Jason Kilar, the former CEO of WarnerMedia (Kilar ran WarnerMedia when the media company was owned by telecoms giant AT&T).
Kilar invested heavily in streaming during his tenure, including HBO Max and simultaneous theatrical releases for Warner Bros. movies in 2021 and oversaw the launch of CNN+, a platform that was quickly shut down by Zaslav's team.
David Zaslav, CEO of Warner Bros. Discovery, brought a new strategy to grow the company with a new impetus to traditional cinema.Kevin Mazur / Getty Images for Warner Bros. Di
Zaslav is believed to be more skeptical of the idea that streaming is the future, and the end, of Hollywood.
He's interested in big-budget shows that can draw audiences to traditional theaters, like
Paramount's
Top Gun: Maverick did this year.
“We will fully embrace cinema because we believe it creates interest and demand,” Zaslav said in Thursday's report, pointing to the box office success of
The Batman
and
Elvis
.
variety of options
Zaslav is also said to prefer the reality shows and "unscripted" shows that are popular attractions on Discovery-owned cable TV channels like the Food Network and HGTV.
HBO Max is home to original shows like the Kaley Cuoco mystery
The Flight Attendant
, the pirate farce
Our Flag Means Death
, and the Emmy-winning showbiz satire
Hacks
, starring Jean Smart as a veteran comedian.
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The platform is also home to an extensive library of movies and TV shows spanning decades, from vintage HBO dramas and NBC's hit sitcom
Friends
to classic films provided by Turner Classic Movies.