Due to the recent announcement of the merger between HBO Max and Discovery+, there has been a flurry of strategic re-directs, from cancellations to ad-supported platforms, leaving users unsure of their streaming service options. According to Decider, the film-friendly HBO Max streamer is making significant adjustments to the schedule and selection of new releases. Warner Bros. Discovery CEO David Zaslav acknowledged the shift to a “case-by-case basis” in deciding which movies are made accessible to subscribers during the company’s second-quarter earnings call on August 4. Zaslav is again swinging the sword to cut off subscriber access to films in the name of his “strategic pivot,” following the profitable spike in HBO Max subscribers after what they internally referred to as “Project Popcorn.”
Former Warner Media CEO Jason Kilar proposed this idea, which would allow members to watch movies after only a 45-day theatrical window in 2022 and see the whole Warner Bros. 2021 slate of films all at once. Even though HBO Max didn’t debut until 2020, Kilar’s strategies paid off, bringing the total number of HBO members worldwide to 73.8 million by the end of 2021—with 11 million of those joining in 2021 alone. There was no mention of how many customers HBO Max gained since 2021 on the Q2 call for Warner Bros. Discovery on August 4.
This company sells both HBO Max and Discovery+. Fans were able to watch major motion pictures like Robert Pattinson’s The Batman and J.K. Rowling’s Fantastic Beasts and Where to Find Them only 45 days after their theatrical releases thanks to Project Popcorn. It was under Kilar that HBO Max members might expect to see original programming from the network, such as the now-infamous Batgirl. Without wasting any time, HBO Max has removed a number of its exclusive originals from the streaming service, making them unavailable to members for the monthly price but still accessible for purchase or rental at an extra cost.
Previously scheduled to debut on HBO Max this week, Baz Luhrmann’s over-$200-million movie Elvis has been pushed back to an unspecified date in the future due to the new administration. On the second-quarter earnings call, Zaslav made the following remarks:
“In terms of economics, the concept of high-budget movies being released only via streaming services is problematic. […] We’re changing tactics. Part of it has been going out into the community and chatting about how dedicated we are to things like theatrical exhibitions and dramatic shop windows. Some movies will have limited release periods.”
After the pandemic, the movie business underwent a dramatic shift in how it approached audiences and how they interacted with new releases in theatres.
Since then, Hollywood has been making efforts to regain its dominant position in the industry. Although some directors go to great lengths to ensure that their movies are seen as cinematic spectacles by employing techniques like IMAX and nostalgic filmmaking, others take their business elsewhere and insist on a minimum of 100 days in theatres before they will even consider releasing their film. The filmmaker Christopher Nolan, in his immense riches and wisdom, called HBO Max “the worst streaming service,” and it appears that his remarks were taken to heart.
Meaningful developments lie ahead for paying customers. The fast turnaround of major movies and HBO originals like An American Pickle starring Seth Rogen was a significant draw for subscribers to HBO Max, but it appears the channel will be reducing both. Zaslav did not say on the earnings call whether or not the service will continue to develop originals like New Line’s remake of the 1990 film House Party starring Jacob Latimore (which was similarly withdrawn off its release date under the radar). Because of the CEO’s failure to include Studio Ghibli, TCM, Criterion, and Crunchyroll in his streamer umbrella, the future of these companies is also uncertain.