Though the $43 billion merger of Discovery and WarnerMedia is expected to be all closed by next month, don’t expect the newly joined Warner Bros. Discovery to merge their two SVOD offerings right away.
Speaking at an investor conference today, CFO Gunnar Wiedenfels revealed that eventually the plan is very much to bring the HBO Max and Discovery+ services together all in a single streaming offering.
However the integration will “take a while” and the near-term focus is providing a bundle of the two discrete services:
“The main thrust is going to be harmonizing the technology platforms, building one very strong combined direct-to-consumer product and platform, and that’s going to take a while.”
Discovery has estimated it will get $3 billion in savings from the deal as it’s estimated they are spending roughly $6 billion for technology and marketing between HBO Max and Discovery+ and once these “two completely separate, direct-to-consumer technology stacks of marketing operations” are combined the number is expected to go right down.
A single offering has been expected as Warner Bros. Discovery will attempt to compete with major rivals like Disney, Netflix and Amazon.