蘑菇AV

HBO Max is back after a lengthy branding misstep: The pivot reflects the enduring power of HBO鈥檚 cultural and commercial identity.

The news: Warner Bros. Discovery (WBD) plans to split into two separate public companies by 2026, one focused on streaming and studios and the other on global cable networks, the company announced. Its streaming company will include HBO Max and WBD鈥檚 movie properties, while the global networks company will include TNT Sports, Discovery, and CNN. Our take: WBD鈥檚 move emphasizes that sticking with a one-size-fits-all model is no longer viable given traditional TV declines and the rise of streaming. Managing decline while pursuing growth requires two fundamentally different playbooks.

Nearly half (46%) of US streaming subscribers now pay for ad-supported tiers across platforms like Disney+, Netflix, Hulu, Peacock, HBO Max, and others, according to a new report from Antenna. Over the past nine quarters, 71% of net new subscription video-on-demand (SVOD) subscribers have come from ad-supported plans.

YouTube expanded pause ads to smart TVs last year, following similar strategies from services like HBO Max, Peacock, and Hulu. 51% of viewers have taken action after viewing a pause ad, per the Video Advertising Bureau鈥攅nticing CTV platforms like Netflix to test shoppable pause ad formats.

MNTN鈥檚 self-serve approach opens the door for smaller advertisers to tap into platforms like Hulu, Peacock, and HBO Max with measurable outcomes. With ad-supported streaming now making up 46% of subscriptions and 57% of Q1 gross ads, the addressable market is expanding fast. That said, macro conditions remain a factor.

Crave鈥攚hich is home to HBO Max content in Canada鈥攊s a homegrown service and has gained more than 1 million subscribers since 2020. Gen Z and millennials are the primary consumers of digital video. Gen Z鈥檚 interest lies mainly in social video on apps like TikTok and Instagram Reels鈥攖he 18-to-24 age bracket has a penetration rate of 97.8% of internet users.

Netflix鈥檚 enhancements to its ad-supported tier has helped it amass 5 million monthly active users worldwide, though its password crackdown could slow momentum. Meanwhile, Max, the combined streaming service of HBO Max and Discovery+, debuted to 鈥渆arly positive feedback,鈥� and Paramount+ hopes partnering with Showtime will prevent it from losing subscribers.

On today's episode, we discuss how to do ads in stores the right way, whether Google will eat the internet, whether the rebrand from HBO Max to Max worked, if the US ad market is starting to see green shoots, how successful the "Barbie" movie has been, and more. Tune in to the discussion with our analysts Ross Benes, Evelyn Mitchell-Wolf, and Max Willens.

Google put ads in its Search Generative Experience. YouTube has a new unskippable 30-second ad spot. HBO Max relaunched as Max. And The Kroger Co. is paving the way with in-store retail media. Here are what updates from these companies and more mean for advertisers.

Among the major platforms that offer both an ad-free tier and an ad-supported tier, only Max (soon to be HBO Max, again) will have fewer ad viewers than Netflix. Click here to view our full forecast for US subscription OTT video viewers, by provider. Ad-supported subscription tiers will provide most of the noteworthy growth stories this year.

Max (formerly HBO Max) is also transitioning from being entirely ad-free to growing its ad-supported base. Max鈥檚 ad revenue gains have been modest. Max also has lower ad loads than other streamers. In Q4 2023, Max鈥檚 ad-supported viewers saw 2.7 minutes of commercials per program, which was 31.7% lower than the average ad loads across streaming services monitored by MediaRadar.

顿颈蝉肠辞惫别谤测鈥檚 Max (formerly HBO Max) and Comcast鈥檚 Peacock are younger than the four platforms that lead them in the chart above. However, both are set for healthy time spent growth among the population this year. Peacock will lead all platforms (47.0% growth), thanks mainly to the 2024 Summer Olympics and other live sports offerings.

Exclusive experiences like this are helping Amex to win over millennials and Gen Zers

A five-year deal in 2019 transferred the series to HBO Max (now Max). The Warner partnership provided critical financial support as viewing habits shifted away from traditional formats. Why it matters: The decision reflects Max's strategic shift toward adult and family programming, including an upcoming Harry Potter series in 2026.

WBD restructures into two divisions: Move positions company for potential deals while managing linear TV鈥檚 cash flow and streaming鈥檚 growth.

Late-to-the-game HBO Max (soon to be just 鈥淢ax鈥�), Paramount+, and Peacock have all built sizable viewer bases in just a few years. Previously lesser-known free services like The Roku Channel, Tubi, and Pluto TV have also surged past the 50 million viewer mark in short order. Even Freevee and Crackle鈥攑latforms with limited name recognition鈥攈ave tens of millions of viewers.

Discovery: Because HBO Max was one of the most popular subscription streaming services, and its reach should only increase with 顿颈蝉肠辞惫别谤测鈥檚 offerings, Max has the potential to become a large ad business. The biggest obstacle to Max鈥檚 success will be the stability of its debt-ridden, content-slashing parent company, which has cut its salesforce and irked lawmakers.

The merger talks revolved around combining key assets, including the streaming services Paramount+ and HBO Max to create a more formidable competitor against streaming giants like Netflix and Disney+. This comes after WBD鈥檚 weaker Q3 earnings, in part due to the Hollywood strikes.

顿颈蝉肠辞惫别谤测鈥檚 Max (formerly HBO Max) and Comcast鈥檚 Peacock are younger than the four platforms that lead them in the chart above. However, both are set for healthy time spent growth among the population this year. Peacock will lead all platforms (47.0% growth), thanks mainly to the 2024 Summer Olympics and other live sports offerings.

HBO Max had been dinged in a number of different occasions for it was just a little bit hard to find things on its interface. It's overall positive, but with some caveats. Marcus Johnson:. It feels like HBO Max to a certain extent on purpose. Warner Bros. Discovery largely rebuilt Max focusing on cleaner navigation, personalization, reliable offline downloads as well.

Beyond the chart: As more streamers like Netflix and HBO Max pivot to ad-supported video, having a strong foothold in the market is a win for platforms. YouTube is in decent shape despite competition, as nearly half of all US viewing for the platform is now happening on TVs, according to our forecast. More like this:. Audience measurement is the biggest question in this year鈥檚 upfronts.

HBO Max is just 鈥楳ax鈥� now. The streamers where brands are allocating upfront spend. 3 tips for a successful marketing mix modeling strategy. Yesterday鈥檚 Chart of the Day: Advertisers vs. publishers. Methodology: Data is from a May 2023 Yahoo Advertising survey as cited in press release. 300 US TV marketers including agencies and brands were surveyed during March 1-8, 2023.

顿颈蝉肠辞惫别谤测鈥檚 HBO Max followed similar patterns.鈥�. Now that Amazon Prime Video has joined the fray, introducing CPMs in the low- to mid-$30 range, it could put pressure on other streamers to keep their CPMs low or risk losing their share of ad dollars.