HBO Max and Paramount+ Merger Plan Unveiled

Reports have emerged of a plan to merge HBO Max and Paramount+ into a single streaming service. According to Skydance chairman and CEO David Ellison, this is the long-term goal for the companies, which are currently owned by Warner Bros. Discovery.

The idea of bundling options will reportedly be implemented in the short term, allowing users to access both services through one app. This move is seen as a step towards the eventual merger of the two platforms. The exact timeline for this process remains unclear.

During a recent event celebrating the merger of Paramount Skydance and Warner Bros. Discovery, attendees were treated to a discussion between Ellison and his co-CEO Ynon Kreiz. However, one notable absence from the conversation was any mention of Discovery. This is particularly striking given that the WBD acronym is often used to refer to the combined entity.

The omission of Discovery's name may be symbolic of its reduced role in the merged company. While David Zaslav, the CEO of Warner Bros. Discovery, has previously emphasized the importance of his company's assets, it appears that Paramount Pictures and HBO are now taking center stage. This shift in focus could have significant implications for the future of streaming services.

The combined entity will be home to a vast library of content, including films and TV shows from Paramount Pictures, Warner Bros., and HBO. However, Discovery+ seems to be falling by the wayside in this conversation. As one of the largest streaming services available, it boasts a range of popular titles and is priced at just $5.99 per month with ads or $9.99 without.

The niche streaming service Discovery+ seems to be taking a backseat in the recent mergers and acquisitions talks between major players like HBO Max and Paramount+. According to data provided by Antenna, a subscription-economy measurement company, there are approximately 4.9 million paying subscribers of Discovery+ in the US as of August 2026.

This number is significantly lower compared to other major streaming services. For instance, Paramount+ boasts around 34.5 million paying subscribers in the US, with about half of them opting for ad-supported plans. HBO Max also has roughly 28.3 million subscribers in the country, with a similar split between ad-supported and ad-free options.

Despite its relatively small user base, Discovery+ is reportedly profitable, with some sources estimating that it generates low nine-figure revenue annually. The service's low expenses are likely due to its reliance on existing content from the Discovery cable channel bundle, which eliminates the need for original programming investments.

One reason for Discovery+'s minimal presence in recent discussions may be that its value lies more in its cost-effectiveness rather than its user numbers. With practically zero expenses associated with cloud storage through Amazon Web Services and no original programming costs, the service can maintain a low price point without sacrificing profitability.

The fact that WBD did not separate streamers in its quarterly and annual earnings reports suggests that Discovery+ is indeed a profitable venture, even if it's not as prominent as other streaming services.

Discovery+'s relatively low cancellation rate is a significant advantage in the streaming market. This steady revenue stream makes it an attractive asset for Warner Bros. Discovery (WBD), which continues to prioritize its flagship service, HBO Max.

The decision not to separate streamers in WBD's quarterly and annual earnings reports suggests that Discovery+ is indeed profitable, but its role within the company remains unclear. The original plan was for HBO Max/Max to offer almost all the same programming as Discovery+, but this content has been significantly reduced from WBD's main digital platform.

A recent statement from Skydance's press release on the completion of their acquisition may hint at plans for Discovery+. According to the announcement, consumers can expect significant improvements to direct-to-consumer streaming products that will unify into a single service over time. However, Discovery+ was not explicitly mentioned in this statement.

WBD chief financial officer Gunnar Wiedenfels recently highlighted the importance of Discovery+ on an earnings call. He noted that while HBO Max has been the main priority, he wanted to discuss Discovery+ and its role within the company's streaming strategy.

Warner Bros. Discovery's recent merger has brought about significant changes in its streaming strategy. However, it appears that Discovery+ will not be one of the casualties of this consolidation. In fact, Wiedenfels noted that the service still has a dedicated user base and is a profitable business.

This assessment is borne out by Warner Bros. Discovery's own financials, which show that Discovery+ has been generating revenue in certain international territories where it has reopened its buy flow. The service has also leveraged its exclusive pan-European pay-TV and streaming rights for the Olympics through 2032 to attract viewers.

The fact that these rights are now owned by Skydance means that Discovery+ will no longer be the sole beneficiary of this deal. However, this shift in ownership does not necessarily mean that Discovery+ is destined for closure. In fact, Wiedenfels sees opportunities for growth and expansion, particularly given its existing user base.

One key factor influencing Warner Bros. Discovery's priorities is its significant debt load, which stands at $80 billion. As a result, the company is likely to focus on its most lucrative assets first, with Discovery+ potentially taking a backseat in the short term.

Casey Bloys has taken on a significant role within Skydance after being appointed to oversee its streaming business. This expanded responsibility now includes managing Paramount+ and Pluto TV, in addition to his existing duties with HBO Max.

Bloys' appointment marks a notable shift in the company's senior leadership team, as unveiled by WBD's David Ellison on Monday. The move suggests a potential consolidation of efforts, with Discovery+ seemingly taking a backseat in the short term.