Speaking at the Deutsche Bank Annual Media, Internet & Telecom conference and quoted by Reuters, Discovery’s CFO Gunnar Wiedenfels said that combining the two would create a more broadly appealing and indeed “blowout” Direct-to Consumer (DTC) product.
Wiedenfels added that Discovery would need to harmonise the separate technology platforms into a single streaming service. It will offer over 200,000 hours of movies and TV episodes, with customers being offered either an ad-free option or cheaper ad supported tier.
As previously reported by Broadband TV News, last May AT&T and Discovery entered into a definitive agreement to combine WarnerMedia’s premium entertainment, sports and news assets with Discovery’s leading nonfiction and international entertainment and sports businesses.
Under the terms of the deal, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, and AT&T’s shareholders would receive stock representing 71% of the new company. Meanwhile, Discovery shareholders would own 29% of the new company.
The European Commission granted unconditional antitrust clearance to Discovery’s acquisition of WarnerMedia last December and the US Justice Department did likewise last month.
Discovery ended Q4 2021 with a total of 22 million DTC subscribers, or 2 million than three months earlier.
Meanwhile, HBO, including HBO max, had 73.8 million global subscribers as of the end of last year.