Published - December 06, 2022 @ 5:30 PM (EET)
Ending a more than year-long break, Warner Bros. Discovery (NASDAQ:WBD) and Amazon (NASDAQ:AMZN) announced that HBO Max is once again available on Prime Video Channels in the US.
The deal reverses a decision made last year by HBO's previous owner, AT&T, to reduce its reliance on third-party platforms for subscribers and establish direct relationships with customers.
Effective immediately, Amazon customers will be able to sign up for HBO Max through the retailer's store for online video channels and watch its programs within Amazon's primary streaming service.
As part of the agreement, HBO Max will cost $14.99 a month, the same price it is available to consumers via other distribution platforms.
The deal will also extend to a revamped streaming service that Warner Bros Discovery is planning to launch next year that will compromise both HBO and Discovery content.
Warner Bros. Discovery is trying to reform through a series of changes and cost cuts while company executives are also close to formalizing its new name and platform for the soon-to-be-launched streaming service.
WHY IT MATTERS
In the fall of 2021, WarnerMedia, a unit of AT&T Inc. (NYSE:T) that merged earlier this year with Discovery Inc. to create Warner Bros. Discover, ended its distribution deal with Amazon.
At the time, HBO Max had about five million customers signed up for the service.
Like the rest of the industry, the company is figuring out how to make the streaming business profitable rather than chasing subscribers while spending heavily on content.
While neither party would discuss deal terms, Warner Bros Discovery's chief strategy officer, Bruce Campbell, said in a statement that the agreement expands the potential audience for HBO Max and advances "our data-driven approach to understanding our customers."
As of 30 September, Warner Bros, Discovery, whose holdings include movie and television studios and cable channels including CNN, HBO, Food Network and HGTV, has $50.1 billion of debt.
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