AP
Warner Bros. Discovery’s goal is to simultaneously make all of the sporting events it has developed for cable audiences over the years available to streamers – if they are willing to pay a premium for the privilege.
The media giant, which has lucrative rights deals with the NBA, Major League Baseball, NHL and the NCAA March Madness tournament, wants to use those properties to draw attention to its streaming service Max. And so, starting October 5th, the company will launch a new “Bleacher Report” add-on package for Max. The offer also includes access to TNT’s popular studio program “Inside the NBA” and international live events such as “24 Hours of Le Mans”. Warner Bros. Discovery promises to stream 300 live games per year.
“We’re trying to find customers wherever we can,” JB Perrette, CEO and president of streaming and gaming at Warner Bros. Discovery, said in an interview — while also working to maintain relationships with people who still have cable not severed. who continue to receive Max as part of a subscription to linear HBO.
The new package will be released on October 5th, just in time for the MLB postseason and the start of the National League Division Series on October 7th, as well as the start of the next NHL season. However, once the NCAA March Madness campaign gains momentum again, the salary scale will go into effect. After February 29, access to Bleacher Report costs $9.99 per month.
Warner expects it will have a difficult path to digital success. The company’s schedule of NBA games, NHL contests and MLB games is a crucial part of the economics of its giant cable networks TNT and TBS. According to data from Kagan, a market research unit of S&P Global Intelligence, these two networks, which show dozens of live sports broadcasts, generated $1.6 billion in advertising revenue in 2022 – nearly 5% of the company’s total revenue that year. And yet Warner has to prove to Wall Street that it can make new profits from streaming; An additional stage could shed light on these efforts.
Warner Bros. Discovery has already taken steps in this direction. It plans to launch a “CNN Max” service on the streaming hub next week. This live streaming news product will simulcast several live hours of linear CNN – including Jake Tapper’s late afternoon show and Wolf Blitzer’s early evening news show.
At a time when viewers are turning away from traditional video channels such as cable television and opting for streaming video, such steps can be crucial. But establishing programming that is the linchpin of the cable network may also anger distributors who continue to spend millions on linear networks. Walt Disney Co. ran into this dynamic in recent carriage talks with Charter Communications, accusing the media giant of bringing too much of the programming that was the focus of its cable networks to its streaming products. The companies’ new deal calls for Charter subscribers to gain new access to Disney streaming providers – and for Charter to abandon a number of established Disney cable networks, including Freeform and Disney Junior.
But Warner executives say they aren’t starving cable to accommodate broadband. “We’re not taking away any content,” Luis Silberwasser, chairman and CEO of Warner Bros. Discovery Sports, said in an interview. And the company will strive to keep things simple for viewers. There are no niche sports offerings limited to streaming, he says, nor are there plans to move games from one platform to another depending on market conditions. “We give consumers a very clear and transparent choice,” he says, based on how they want to watch.
The company plans to offer additional content and technology features as the offering continues to develop. Over time, Silberwasser expects to introduce options such as multiple camera angles and the ability to watch a game from the beginning if viewers are late. He also predicts that Warner could test “alterna-casts,” meaning sports broadcasts that are tailored to specific audiences or hosted by a different group of commentators.
Until Bleacher Report is released, Max’s entertainment offerings will be complemented by news and sports options. Perrette believes this will result in subscribers staying on the site for longer and create a new revenue stream. Of course, the company leaves nothing to chance. As March Madness nears the end of the free-to-play sports window, Warner Bros. Discovery will likely go into sales mode for Max. “We go door to door,” says Perrette.