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The Evolution of HBO Max
HBO Max has experienced numerous transformations since its launch in 2020. It has changed ownerships twice, temporarily dropped the "HBO" from its name in 2023, and then reintroduced it the following year. Additionally, parts of its content library have disappeared, often for reasons tied to tax write-offs. Despite these changes, a new development is on the horizon: the potential merger between Warner Bros. and Netflix.
This merger has sparked questions about the future of HBO Max. After all, Netflix is the dominant streaming service, so why would it need HBO Max around? According to Professor Ted Striphas, chair of the Department of Media Studies at CU Boulder, the answer isn’t straightforward.
The Future of HBO Max
During a conversation with Joe Schmidt, Striphas suggested that HBO Max wouldn’t be shut down immediately. Instead, it might evolve into a hub within Netflix’s extensive library of films and TV movies, similar to how Hulu is being integrated into Disney+ this year.
"I’m thinking of the ways in which Hulu and Disney have integrated recently so that you get these omnibus platforms where they still retain the identity Hulu over here, [Disney] over here so that you can access them each through the same portal. It wouldn’t be surprising to me to see if, essentially, HBO Max becomes a channel within Netflix and then Netflix is offered reciprocally under the auspices of HBO Max. But at some point down the road, I would be shocked if they aren’t consolidated."
If the merger goes through, it could significantly alter the types of projects Netflix offers and even change the way movies are released. This shift could have a major impact on the theatrical industry, potentially reshaping it in ways that may not be beneficial.
Why Netflix is Interested in Warner Bros.
Striphas also highlighted the main reason behind Netflix’s interest in acquiring Warner Bros. It’s due to the studio’s vast collection of intellectual property (IP). Warner Bros. owns several well-known brands, including DC Comics characters, Looney Tunes, and the Harry Potter franchise, which Netflix has called the "crown jewel" of its acquisition.
In contrast, Netflix’s attempts to create blockbuster franchises with films like The Electric State and Rebel Moon have not been very successful. Therefore, it makes sense for the streamer to seek out established IP to bolster its offerings.
Integrating HBO Max into Netflix would provide access to a wide range of critically acclaimed movies. These include the action-packed films from James Gunn’s Superman, the adrenaline-filled MonsterVerse movies, and the horror hits from The Conjuring franchise. Such additions could attract more subscribers to Netflix.
Netflix’s Impact on Theatrical Releases
When Netflix announced its bid for Warner Bros., one pressing question was what would happen to Warner Bros.’ theatrical slate. Netflix has shown a clear preference for streaming over traditional theatrical releases. It typically only releases certain movies for the short time needed to qualify for awards or to capitalize on breakout hits like KPop Demon Hunters and the final season of Stranger Things.
Netflix CEO Ted Sarandos tried to reassure stockholders by stating, "In this transaction, we pick up three businesses we’re not currently in, so we have no redundancies currently. One of them is a motion picture studio with a theatrical distribution machine. We’re deeply committed to releasing those movies exactly the way they would release those movies today."
However, previous mega-mergers have led to significant changes. For example, the Disney/Fox merger resulted in the closure of departments and films, while Paramount has undergone its own transformation after merging with Skydance. Given that Netflix’s theatrical windows are usually around 17 days—far shorter than the typical 30-45 days for other films—movie fans might see fewer cultural events like Sinners or One Battle After Another, which could be a major blow to the theatrical experience.
Potential Implications of the Merger
There’s a possibility that Netflix might adopt a strategy similar to Warner Bros.’ "Project Popcorn," which allowed every movie in the 2021 slate to be released on HBO Max on the same day as its theatrical debut. While this increased HBO Max subscriptions, it negatively affected box office revenue and alienated talent, most notably Christopher Nolan, who criticized the decision and chose to take his next film, Oppenheimer, to Universal.
If Netflix follows a similar path, it could alienate talent and transform theaters into "jazz bars," a concern expressed by Leonardo DiCaprio.
The Streaming Wars and the Future of Movies
The primary argument against mega-mergers is that they eliminate competition, and Netflix’s acquisition of Warner Bros. would make it the dominant force in the streaming market. Combining Netflix’s original programming with Warner Bros.’ IP would solidify its position as the leading streamer.
Netflix co-CEO Greg Peters once criticized Paramount’s attempt to acquire Warner Bros., suggesting it couldn’t buy its way to the top. Ironically, Netflix is now pursuing a similar strategy with its own acquisition of Warner Bros.
Whether Netflix finalizes the deal or Paramount makes an offer Warner Bros. can’t refuse, the future of movies will look vastly different. HBO Max will play a role in this transformation, whether as a standalone service or integrated into Netflix.