Skydance CEO Confirms HBO Max and Paramount+ Will Eventually Merge Into One Service

Key points

• David Ellison stated that HBO Max and Paramount+ will be combined in the long term, but will operate separately in the immediate term with bundling options available shortly.
• The merger of Paramount and Warner Bros. Discovery, valued at $111 billion, officially closed on October 6, 2026, creating a new entity called Skydance.
• The combined streaming service will have approximately 200 million subscribers, matching Amazon Prime and approaching Netflix's 325 million subscribers.
• Ellison credited advancements in AI technology for potentially accelerating the integration of the two platforms.
• The company has announced $6 billion in planned cost cuts, including layoffs, though specific divisions affected have not been disclosed.
• Current subscription prices for HBO Max and Paramount+ range from $8.99 to $22.99 per month, with potential combined prices reaching $36.98 per month if not bundled.

Background

The Paramount-WBD merger has been a significant development in the media industry, with months of antitrust roadblocks before its official close. Earlier coverage indicated that Casey Bloys, the incoming head of the combined streaming division, suggested that HBO Max and Paramount+ would likely be bundled rather than fully merged, citing the successful HBO Max-Disney bundle as a model. The merger aims to consolidate over 200 million subscribers to compete with major streaming platforms like Netflix and Amazon.

How outlets are covering it

While David Ellison emphasized the long-term goal of merging HBO Max and Paramount+ into a single service, Casey Bloys, the incoming head of the combined streaming division, suggested that the services would likely remain separate with bundling options, similar to the HBO Max-Disney bundle. This discrepancy in messaging highlights the uncertainty surrounding the short-term strategy for the combined streaming service. Additionally, while Ellison expressed confidence in the integration process, he did not provide specific details on pricing or consumer adoption strategies, leaving questions about the potential impact on subscribers.

Why it matters

The merger of Paramount and Warner Bros. Discovery creates a media giant with significant market power, potentially impacting competition in the streaming industry. The consolidation of over 200 million subscribers could lead to higher prices and reduced content diversity for consumers, as the combined service may not cater to all preferences. The integration of HBO Max and Paramount+ could also affect the availability of popular shows and the overall user experience, as the two platforms have distinct content libraries and brand identities.

What to watch

The next steps for Skydance include the implementation of bundling options for HBO Max and Paramount+ in the short term, followed by the long-term integration of the two services into a single platform. The company will also need to address the $6 billion in planned cost cuts, including layoffs, and determine the pricing strategy for the combined service. Additionally, the integration of Discovery+ into the unified platform will be a key focus, as it will further expand the content library and subscriber base.