It’s a surprising move in the world of streaming entertainment. According to sources, Warner Bros. Discovery is currently in talks with Netflix to license HBO shows, including the hit series “Insecure.” This potential licensing agreement between two major competitors has caught many off guard.
If the deal goes through, HBO shows would be available for streaming on both Netflix and the newly rebranded Max platform. This would mark the first time that HBO’s acclaimed original series would be accessible on a rival streaming platform in the United States.
HBO has traditionally kept its original content within its own corporate network. For example, “Sex and the City” was syndicated to TBS, a corporate sibling, and later to other basic cable networks. However, during the tenure of former CEO Richard Plepler, HBO licensed shows like “The Sopranos,” “Six Feet Under,” “Deadwood,” and “The Wire” to Amazon, as HBO did not have its own streaming platform at the time.
Sources indicate that there was initial resistance within HBO to the idea of licensing their content to Netflix. However, finance executives at Warner Bros. Discovery were able to convince their colleagues of the potential benefits. This licensing deal would not only expose HBO’s prized titles to a wider audience but also improve Warner Bros. Discovery’s financial situation. After Discovery took control of WarnerMedia, the combined company ended the first quarter with nearly $50 billion in debt. In an effort to cut costs, Warner Bros. Discovery has already removed some underperforming HBO titles from the Max platform and licensed them to ad-supported streamers, such as “Westworld.”
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While it may come as a shock to see HBO titles on Netflix, this move is not without precedent. Paramount Global CEO Bob Bakish previously licensed a number of Paramount’s streaming hits to various platforms to reach a larger audience. For example, “South Park” was licensed to Max, while “Rick and Morty” was shared with Hulu. Bakish later regretted exclusively licensing “Yellowstone” to Peacock.
This surprising potential deal was first reported by Deadline, a corporate sibling of The Hollywood Reporter.
In conclusion, the talks between Warner Bros. Discovery and Netflix regarding the licensing of HBO shows have taken many by surprise. If the agreement is finalized, it would allow HBO’s original series to be streamed on Netflix in the U.S for the first time. While HBO has traditionally kept its content within its own network, the licensing deal could provide a new audience for their shows and improve Warner Bros. Discovery’s financial situation. This move is not unprecedented in the industry, as other companies have previously licensed their content to various streaming platforms. The development of this potential deal will be closely watched by industry insiders.
