Plans for Streaming Service Merger Unveiled by Skydance CEO
David Ellison, the CEO of Skydance, is pressing ahead with his strategy to merge HBO Max and Paramount+ into one comprehensive streaming service. This has led to discussions about the potential cost implications for viewers.
The recent closing of the $81 billion merger between Paramount and Warner Bros. Discovery marked the beginning of a new media powerhouse named Skydance, resolving a series of antitrust hurdles that had delayed the process.
During a press conference on his inaugural day at the helm of this new entity, Ellison shared insights about the future trajectory of the company. He indicated that they plan to unify HBO Max and Paramount+ into a singular streaming offering, but acknowledged that it would take some time to fully realize this vision. “You’ll see them operated separately for the moment,” he noted, suggesting that “bundling” options could be available fairly soon.
Ellison expressed optimism regarding the company’s ability to expedite this unification, citing advancements in AI technology as a contributing factor, although he didn’t delve into specifics about the bundling plans.
The combined streaming platform is expected to attract around 200 million subscribers, according to Ellison, merging the third- and fifth-largest services in the U.S.
This booster could position the new service on equal footing with Amazon Prime, which currently boasts about 200 million subscribers, while still trailing Netflix’s expansive user base of 325 million.
During the conference, Ellison emphasized that a combined offering would equip Skydance to compete more effectively with major players like Disney, Netflix, and Amazon.
However, the price point of the new service remains uncertain, and there are questions about whether rates will increase. Notably, Skydance has already unveiled plans for $6 billion in budget cuts, including layoffs, although it hasn’t specified which parts of the business would be affected.
Currently, HBO Max’s basic plan with ads costs $10.99 a month, while the ad-free version goes for $22.99. For Paramount+, the Essential plan is priced at $8.99 a month, whereas the Premium option, which is ad-free and allows for live CBS streaming, is $13.99 monthly.
If the prices were simply combined, customers could potentially face a monthly fee of $19.98 for a basic plan and a staggering $36.98 for a premium subscription.
There’s a possibility that the company might adopt a strategy similar to that of Disney+ and Hulu by offering discounted bundles in the short term. For context, the Hulu standalone plan costs $12.49 with ads or $21.49 without ads, while Disney+ has similar pricing. Their popular bundle, however, sets customers back just $12.99 a month, presenting a significant discount compared to buying the services individually.
In contrast, HBO Max’s bundle with Disney+ and Hulu comes at a higher cost, starting from $21.99 for the ad-supported version, and even higher for the ad-free option.
HBO Max features acclaimed shows like “House of the Dragon,” “Succession,” and “The White Lotus,” while Paramount+ offers popular titles such as “Yellowstone,” “Landman,” “Criminal Minds,” and “South Park.”
Ellison had initially hinted at merging the two services back in March, contingent on obtaining necessary regulatory approvals, though there have been mixed messages from company executives since then. Casey Bloys, now the chief content officer overseeing the integration of the two platforms, recently indicated that he expects them to remain separate while offering bundling options, with no current mention of a full merger.
“I don’t want to speculate on the future,” Bloys said, but he did point to the success of HBO Max’s collaboration with Disney as a potentially relevant model.
The Post has reached out to Skydance for additional comments on this development.
