Exclusive content deal with Sky expires at the end of next year, paving the way for WBD to launch streaming Max in the UK.
- WBD’s HBO content including House of the Dragon will no longer be restricted to Sky’s linear and on-demand TV platforms.
- WBD still in talks with Sky over carriage.
Sky could be on the verge of losing exclusive access to HBO content as backroom discussions get underway to prepare for the launch of streaming service Max.
Max, which is already live in a number of European countries, can’t launch in the UK or Ireland until a content deal signed between WBD’s predecessor WarnerMedia in 2019 finishes at the end of 2025.
WBD has so far been cagey about what’s happening ahead of the deal ending. In May, Gerhard Zeiler, president of Warner Bros Discovery International, a division of WBD, hinted that a deal with Sky is on the cards, but would be on very different terms. In June, Sky’s Dana Strong indicated she was “confident” that a deal would be struck.
Now the FT, quoting executives familiar with the negotiations, has confirmed that WBD has commenced discussions with three rival platforms.
Virgin Media, EE and Amazon Prime are all in negotiations – described as “fluid”, according to those involved – to add the Max app on their platforms. Discussions have centred around the fee that these providers would need to pay WBD to offer Max via their platforms.
All but Virgin Media offer the current Discovery+ app on their platforms. Max will effectively replace Discovery+, adding entertainment and children’s content to Discovery+’s mix of factual entertainment and sports content.
Consequences for Sky
It appears now certain that if Sky does strike a deal to retain The White Lotus, Succession and House of the Dragon beyond 2025 it will no longer be on an exclusive basis.
Although Sky may be able to offer a deal to offer Max content at no extra cost to subscribers initially, that’s not guaranteed to last.
The deal would undermine the viability of the Sky Atlantic channel, which was set up over a decade ago as the ‘home of HBO’ content. Sky has closely protected the channel, only making it available via Sky or its sibling NOW.
Virgin Media TNT Sports
Meanwhile, Virgin Media is still trying to secure ongoing access to WBD’s TNT Sports channels beyond Wednesday 31st July. With less than 48 hours to go, the FT adds a deal may not be agreed until shortly after the deadline. That could mean viewers temporarily lose access to the channels.
Analysis
The fact that news of WBD’s discussions over Max with Virgin, EE and Amazon have been readily leaked may be a way of sending a signal to Sky. Sky has previously been confident that whatever happens, Sky would have access to WBD content beyond 2025. Could the leak be a sign that WBD hasn’t been getting the response from Sky that it’s been expecting? Since the 2019 HBO deal was signed, its parent company has grown to one that could easily eclipse Sky’s owner Comcast. Has Sky’s approach to WBD changed to reflect this role reversal? It will need to be less complacent and may need to dig deep to keep WBD on board.
By: Marc Thornham | Image: WBD