When the announcement of HBO Max’s UK launch finally came this week, many observers expected a follow-up from Sky confirming that the service would be available to existing subscribers, along with a reference to Sky Atlantic somewhere in the 9th paragraph.
Instead, it was Sky’s announcement that Disney+ will join the group of services offered under its umbrella that attracted the headlines. Disney+ will sit alongside Netflix, Paramount+ and Discovery+, as well as HBO Max. This means that four out of the five most popular streaming services will have preferential distribution arrangements with the Comcast-owned platform. The sixth service is Apple TV+, while Hayu – also announced today – does not feature prominently in BARB’s most recent Establishment Survey.
The notable exception is Amazon Prime Video, whose business model emphasises value through bundled benefits and a feature set that includes regular visits to your neighbour to collect parcels.
Each partnership operates differently. Netflix, as in many markets, was the first to be integrated. Paramount+ is not available to basic subscribers but only to those who subscribe to Sky Cinema, while the new Disney-branded movie channel is positioned to surface titles that might otherwise be overlooked within the streaming service itself. Across these offerings, subscribers typically have the option to upgrade to an ad-free tier.
Both Sky and the streamers have undergone significant change. After Sky launched Sky Multichannels more than 30 years ago, it became a leading aggregator and a stable distribution environment for what were then relatively new linear channels. It is now performing a similar role for streaming platforms, although its strategic need appears greater the second time around. As Sky demonstrated last week by consolidating Sky Showcase and Sky Max into a revived Sky One, the number and prominence of linear channels are declining.
Streaming services, which initially positioned themselves as ad-free, have increasingly introduced advertising to expand their addressable markets. Sky can help protect these services from volatility in subscriber numbers, particularly where audiences may subscribe temporarily for a flagship series like The White Lotus, but show less sustained interest in subsequent franchise extensions.
Unlike in the era dominated by linear channels, all streaming services will still be available direct to consumers. Nevertheless, bundling within Sky’s ecosystem offers a degree of stability by smoothing fluctuations in subscriber demand. Safety in numbers also means less churn for those under the umbrella.
