Skydance CEO Confirms Plans to Merge HBO Max and Paramount+
David Ellison outlined the long-term strategy to combine the two streaming platforms into a single service, aiming to compete with major players.
Skydance CEO David Ellison has confirmed plans to merge HBO Max and Paramount+ into a unified streaming service, a move that could significantly alter the subscription landscape for consumers. The announcement comes as Skydance officially closed its $81 billion merger with Paramount and Warner Bros. Discovery on Tuesday.
Ellison stated that the long-term goal is to bring HBO Max and Paramount+ together, though he indicated that the platforms would operate separately in the immediate future. "Bundling" options are expected to become available in the relatively short term, with the company aiming to accelerate the integration process through technological advancements, including AI.
The combined service would create a formidable competitor in the streaming market, boasting an estimated 200 million total subscribers. This would place the new entity on par with Amazon Prime and significantly closer to Netflix, which currently leads with 325 million subscribers. Ellison expressed confidence that this consolidation would enable Skydance to "compete with the Disneys and Netflixes and Amazons and anybody in the world."
Details regarding the potential cost of the combined service remain unclear. Skydance has already announced plans for $6 billion in cost reductions, which could include layoffs, but specific divisions impacted have not been identified. Currently, a basic ad-supported HBO Max plan costs $10.99 per month, with an ad-free version at $22.99. Paramount+ offers an Essential plan for $8.99 per month and a Premium ad-free plan for $13.99 per month. A direct combination of these prices would result in a basic plan of $19.98 and a premium subscription of $36.98 per month, though the company is likely to offer bundled discounts.
This announcement follows some ambiguity from company executives. While Ellison had previously indicated a merger was contingent on regulatory approval, Casey Bloys, tapped as chief content officer for Skydance, recently suggested that the platforms might remain separate with bundling options, citing the success of the HBO Max-Disney bundle. Skydance has not yet provided further comment on specific bundle offerings. The merger integrates content from popular shows like HBO Max's "House of the Dragon," "Succession," and "The White Lotus," alongside Paramount+'s "Yellowstone," its spin-offs, "Landman," "Criminal Minds," and "South Park."