HBO’s Parent Company, AT&T is almost at the verge of striking a $159 billion merger deal with Discovery.
Inline with TechNext the deal will usher in together Hollywood’s biggest studios, Warner Bros and Discovery to create a new video streaming mountain.
Some reports already suggests that the new firm would be separate from AT&T (The telecoms arm).
However, AT&T currently owns CNN, HBO and Warner Bros, after acquiring Time Warner for $108.7bn in 2018.
AT&T, Discovery $150Bn Imminent Deal Could Boost HBO Max Launch in the African continent.
The multi industrial company has been venturing to bring it’s streaming service to Africa for awhile now and this deal could Fasten that launch.
Streaming Service Expansion
In January, HBO Max went public with its intention to expand its reach into Africa, the Middle East, and Europe.
The streaming service has made selected region for it’s expansion with a great leadership to oversee the expansion. In announcement, Christine Sulebakk was appointed as HBO Max general manager across Europe, the Middle East and Africa (EMEA).
The company is yet announce stipulate the exact date of it’s launch and when video streaming service would be made available in sub-Saharan Africa but with rumours earlier circulated it’s expected it will be long. Smarttechvilla believes this new deal with discovery could speed up the launch and shorten the respected time frame.
Meanwhile, battle for the streaming market dominance is far heating up and the AT&T cooperation took its first major step up when it’s acquired the Time Warner and HBO in 2018. Though, with the planned swift deal with Discovery, the Telecomm giants could be looking to flop Netflix dominance.
Right now, Discovery’s market value, including debt, currently stands at around $30bn
Africa’s Streaming Market
Africa has seen massive growth in the video streaming industry. Recently MultiChoice added two of HBO’s competitors, Netflix SA and Amazon Prime Video to its network in South Africa. This increases the number of subscribers for the streaming companies outside the US.
HBO and HBO Max have around 64 million subscribers worldwide. This is way more short compared to the leading streaming service Netflix’s which has over 200 million subscribers, and Disney+ over 100 million subscribers.
However, the streaming platform’s could experience a significant amount of growth if Discovery’s portfolio is uphold. Discovery is currently in more than 88 million homes while its Discovery+ streaming service has 15 million subscribers.
HBO Max is not a strange steaming service on the continent. The record-breaking series like Game of Thrones, Watchmen, Titans etc are well watched by Africans has made a ground opening for the service launch in Africa.
Although most of its movies are currently streamed on third party platforms, however when the impend launch takes place, its unique portfolio could help the service gain more subscribers as Africans would welcome a platform to watch all its series in one place.
According to Technext another implication is the, acquisition of local content to satisfy its subscribers when it launches just like Netflix.
The finalization of the AT&T Merger deal would PAVE new entry of another major player into the streaming market.
It is a wonderful play to see the combination of the movie-making powerhouse, Warner Bros. Entertainment and Discovery’s stable of cooking, nature and science shows.
However, a major byproduct of the deal could be a hurried expansion into new markets like the middle east and Africa.
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