The sports add-on aligns with the company’s strategy of focusing on their Max app, which recently rebranded from HBO Max. The basic Max app subscription starts at $9.99 per month, with an annual plan available for $99.99.
Offering live sports content is a significant move for Warner Bros. Discovery as it is one of the key factors that have traditionally kept cable bundles attractive to consumers. By incorporating live sports into their streaming service, the company is positioning itself to potentially attract more viewers who are considering cord-cutting. However, it’s important to note that the focus of the add-on will most likely be on national broadcasts from TNT, TBS, and truTV, rather than regional sports channels that offer local games.
While Disney plans to launch a streaming version of ESPN in the future, they have recently entered into a deal with Charter Communications, indicating that they are not yet prepared to completely abandon linear television.
Warner Bros. Discovery has faced challenges since AT&T spun off WarnerMedia to merge with Discovery. The company shares have experienced a 12% decline over the past 12 months, although there has been a 23% rally in 2023. To achieve its merger objectives, the company has implemented various strategies such as removing content from streaming services for tax benefits and licensing out content to other streaming platforms. CNN+, a streaming service launched by the company, was discontinued shortly after its debut. Instead, starting on September 27, CNN content will be made available on Max.