Warner Bros. Discovery Takes on Disney, Paramount and Comcast, Eyes Live Sports for Max

Warner Bros. Discovery Inc WBD looks to offer live sports content on its Max streaming service for a limited period in 2023 to grab more eyeballs.

However, the catch is that customers will have to pay an additional fee for sports access starting next year, likely around February or March, Bloomberg cites familiar sources.

Also Read: Bright Future for Warner Bros. Discovery, Thanks To Content Slate and Debt Reduction Plans: Analyst

The March Madness college basketball tournament, aired by Warner Bros. Discovery on its cable networks, is a potential selling point to entice subscribers to Max. 

Warner Bros. owns media rights to several popular sports, including the National Basketball Association and Major League Baseball. 

It is in the process of devising strategies to leverage these assets for its emerging streaming business. Conversations with major sports leagues are ongoing to secure streaming rights.

Max offers two subscription tiers: a $10 per month plan with ads and a $16 per month ad-free option. 

As of the end of June, Warner Bros. had nearly 96 million subscribers to its streaming services worldwide. 

However, while Max subscribers can access a vast library of HBO and Warner Bros. movies and TV shows, they still require a cable TV subscription to watch live sports.

This trend is shifting across the industry as more streaming services look to offer live sports to attract a broader audience. Walt Disney Co DIS has explored the possibility of making ESPN, a leading sports network on cable, available online for those without cable or satellite subscriptions. Paramount Global PARA already includes professional football in its namesake streaming service, while Comcast Corp CMCSA has secured rights for soccer and football on Peacock.

Live sports are known for their strong viewership and ability to command premium advertising revenue. 

However, media companies offering popular sports on streaming platforms risk cannibalizing their cable networks, which, though facing a decline, are still profitable. 

Disney channels, for instance, are currently unavailable to Charter Communications Inc CHTR customers due to a fee dispute.

The Hollywood strike prompted WBD to revise its financial guidance as it had to postpone its movie releases.

Price Action: WBD shares closed lower by 2.83% at $11.17 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.