David Ellison Believes Merging Paramount+ and HBO Max Could Compete Effectively with Netflix
Paramount CEO David Ellison has stated that the company’s impending merger with Warner Bros. Discovery is set to enhance its competitiveness against Netflix. This consolidation is expected to unite Paramount+ and HBO Max into a more formidable streaming platform.
In a conference call with Wall Street analysts on Monday, Ellison discussed the $111 billion deal, indicating, “We will combine the streaming portfolios of the two companies into one stronger platform over the coming years.” He noted that the combined subscriber base for Paramount+ and HBO now exceeds 200 million across more than 100 countries, positioning the companies to effectively compete in the current streaming marketplace.
Netflix reported 325 million global subscribers by the end of 2025. While Ellison’s estimate regarding the combined subscriber count is accurate, it’s important to recognize that the 200 million figure counts each service’s subscribers separately. The overlap among subscribers, with many accessing both services, must also be taken into account.
Watch on Deadline
A key consideration brought up by Ellison is the impact of HBO’s linear distribution model, which is under increasing pressure due to cord-cutting trends. Despite the decline in traditional cable subscriptions, HBO continues to reach millions of households through cable and satellite services, necessitating new negotiations to ascertain pricing and packaging strategies for streaming availability.
Following the merger of Skydance with Paramount, Ellison has aimed to integrate the technological infrastructures of ad-supported services like Pluto TV, Paramount+, and BET+. This consolidation aims to streamline operations and reduce costs, a similar process is anticipated with WBD, according to Ellison.
He expressed confidence in the merger’s potential, stating, “We think the combined offering, given the amount of content and what we can do from the tech side, really will put us in the position to be able to compete with the most scaled players in DTC.”
Ellison has reiterated his commitment to investing in technology for Paramount+. He emphasized the necessity for engagement in direct-to-consumer business success, stating, “When it comes to the DTC business, engagement is absolutely key to success there.” He underscored that combining the strengths of both studios will help deliver content that audiences are eager to engage with.
In addition to maintaining content investments, Ellison noted plans to “significantly improve the tech product to keep people engaged with that platform for longer.” He believes that investing in technology and content will produce a service capable of competing with leading players in Silicon Valley and the broader industry.
