The streaming business, meanwhile, has much upside, the Discovery CFO said, highlighting: “I have no doubt that we are creating one of the absolutely leading content powerhouses in the world.” The combined company will use a streaming strategy whose outlines are “pretty much ready” as much as is possible before the deal closes. “We have been hard at work here over the summer,” he said without sharing details, which he said would be finalized and unveiled in the future.
He didn’t directly answer a question on whether the merged company would offer the HBO Max and Discovery+ streaming services separately or bundle or combine them. But he did say that subscription streaming services will be the priority, with both firms currently offering “products that are very much average revenue per user-focused, high-value kinds of products” with high engagement.
“Fundamentally, we believe that our content, the content of the combined company for sure, will be valuable enough to merit a subscription payment on an ongoing basis,” Wiedenfels said. “That is going to continue to be the priority.” He added that management would also be “looking very hard” at advertising-light versions of subscription services in international markets. The launch of a fully advertising-based VOD product is “not a huge strategic priority,” but if one may come to market as a “long tail library content” offering down the line “remains to be seen,” Wiedenfels said.
The Discovery+ streaming service launched in the U.S. on Jan. 4 with a monthly price of $4.99 with ads and $6.99 without ads. It has also been rolling out in international markets.
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