Higher prices, simpler streaming expected if HBO Max folds into Paramount+

Warner Bros. Discovery (WBD) has a ‘for sale’ sign up. And that could mean big changes for subscribers to the company’s most popular streaming service, HBO Max.

After receiving unsolicited acquisition offers, WBD recently declared itself open to “strategic alternatives to maximize shareholder value.” WBD drew new attention by being open to selling its streaming business (WBD is also still open to moving forward with previously shared plans to split into a cable company and a streaming and movie studios company next year).

Naturally, mergers and acquisitions talk has heated up since then, with Paramount as one of the most eager suitors. Paramount, which merged with Skydance in August, is reportedly planning to keep “much of Warner Bros. Discovery Inc. intact” if a deal happens, per a Bloomberg report that cited unnamed people familiar with the plans of David Ellison, Paramount’s CEO.

For HBO Max subscribers, the most pertinent part of Bloomberg’s report follows:

Under Ellison’s plan, Warner Bros.’ HBO Max streaming service would merge into the existing Paramount+ platform, one of the people said. He believes combining the offerings will allow more people to see the work of film and TV show creators. The libraries of the two companies will make Paramount+ more compelling for subscribers.

The purported strategy would likely end the ability to subscribe to HBO Max in favor of the opportunity to pay for a beefier version of Paramount+.

Higher prices are possible

Choice is typically seen as good for consumers. But in the case of streaming, which only recently overtook broadcast and cable viewing, the recent expansion of services available is often viewed negatively. Streaming fragmentation forces people to jump from service to service in order to find something to watch and to pay for more subscriptions.