Max and Disney join together in a package to make their business profitable

Until now, Disney and Max had agreements with telephone and pay television service operators worldwide so that these companies could add their streaming platforms to service packages, in order to become an additional channel to make their offer available to others. segments of the population.

“I have said it for a long time, we need to come together and provide a better consumer experience, a more attractive and exciting offer, or there will be other companies that will do it for us,” acknowledged Warner’s CEO in a conference with analysts.

The industry is increasingly finding it more complex to increase its sales due to the entry of more players and the introduction of new payment models such as subscriptions with advertising. Therefore, Max and Disney joined the strategy that Prime Video has maintained for some time. several years.

The Amazon Studios video-on-demand platform became an aggregator of its competitors’ programming with the purpose of giving the possibility of accessing other streaming content for an extra amount, in addition to its own. This tactic offers you an additional attraction compared to other platforms to enjoy more content in a single application.

“It used to be about trying to figure out if each individual company could invest enough to offer something great for everyone in the home, the reality is that we have all learned the hard way that the expense and excess of content from a consumer point of view was too much.” and this experience allowed us to see that we needed a package together,” admitted Zaslav.

They seek to improve their income

The new plan will allow companies to add more users to their subscriber base, but also to improve their Average Revenue Per User (ARPU), that is, the expense that people spend on a monthly basis. To make their tactic effective, Max and Disney will rely on marketing advertising from both parties and on the platforms themselves that will lead to the package.

“This will continue to be our strategy. We will continue to explore partnerships with other programmers and streamers and I think this will be a pressure for other players,” said Jean-Briac Perrette, CEO and global president of streaming and Games at Warner Bros. Discovery, in a conference with analysts.

The CEO of Warner trusts that the strategy will be successful thanks to the robust portfolios that Disney and Max itself have, unlike Netflix, which for years has been dealing with the theft of programming due to the entry of new platforms and which now seeks to license content for keep your programmatic grid attractive.

Only since the entry of the Disney platform in 2020 and a year later that of HBO Max, Netflix saw its market share decrease in Mexico. The platform went from having 77.2% of users in the country in 2020, to having 53% at the end of 2023. And the union of the streaming giants could mean a new reconfiguration of customer acquisition