WBD may add live sports to Max.

Warner Bros. Discovery Considers Adding Sports Tier to Max

Warner Bros. Discovery is exploring the possibility of streaming live sports, including NBA, MLB, and NHL games, on its Max platform. The company’s CEO, David Zaslav, mentioned during an investor call that they have been studying how to bring live sports to their U.S. streaming service. One option being considered is to introduce a sports tier for subscribers.

Sports as a Key Differentiator for Warner Bros. Discovery

Zaslav emphasized the significance of news and sports as important differentiators that make streaming platforms more compelling. He mentioned that there are no technical barriers preventing Warner Bros. Discovery from streaming sports games. Apart from existing broadcast agreements with NBA, MLB, and NHL, the company also holds rights to March Madness. In fact, Max had already debuted live sports content with a soccer event in January.

Potential Increase in Subscription Prices for Sports Content

JB Perrette, the global chief of streaming at Warner Bros. Discovery, shared that in some countries, they have charged higher prices for sports content. This approach is due to considering sports as a premium offering with a dedicated and passionate fan base. If Warner Bros. Discovery decides to add sports to Max, it is likely that subscribers will need to pay extra for access.

Current Pricing and Subscriber Losses

Currently, Max has three pricing options: $9.99 with ads, $15.99 with no ads, and $19.99 with no ads and 4K quality. Despite the addition of Discovery content through a rebrand in May, Max experienced a loss of 1.8 million subscribers between April and June. This could make the integration of sports content a strategic move for boosting subscriber numbers and revenue.

Max’s Role in NBA Broadcast Negotiations

As a current NBA broadcast partner, Warner Bros. Discovery’s TNT has been airing NBA games since 1989. However, as negotiations for a new broadcasting deal approach, the exclusive negotiation period will involve both Warner Bros. Discovery and Disney. Comcast, Apple, and Amazon are potential suitors if the NBA package becomes available on the market.