HBO’s Value Will Be “Unlocked” By Merger, Netflix Co-CEO Greg Peters Says; Bundle Details Still TBD

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HBO’s Value Will Be “Unlocked” By Merger, Netflix Co-CEO Greg Peters Says; Bundle Details Still TBD  Netflix believes one plus one will equal three in terms of HBO joining its portfolio.  Co-CEO Greg Peters said as much throughout a 45-minute conference call with Wall Street analysts about the $82.7 billion acquisition of Warner Bros. Discovery’s studios-and-streaming division.  “It’s quite early to get into specifics,” Peters said about how exactly HBO will be combined with Netflix.  He also acknowledged there is a “high overlap of subscribers” to both Netflix and HBO. But the deal “gives us a lot of levers to think about in terms of packaging,” he said. “We’ve also seen that some of these bundles and models, if you construct them correctly, can have all sorts of benefits with retention and engagement.”     #netflix #warnerbrosstock #nflx #netflixbuyingwarnerbros #netflixstockprice #netflixhbo #netflixbuyswarnerbros #didnetflixbuywarnerbrothers #whoownshbo #netflixwb #davidellison #netflixacquirewarnerbros #netflixnews #warnerbrothersstock #whatdoeswarnerbrosown #doeswarnerbrosownhbo #tedsarandos #warnerbrosnetflix #warnerbrosdiscoverystock #davidzaslav #netflixwarner #netflixhbomax #wbdstockprice #netflixbuywarnerbros #netflixwbd #whoownshbomax #rimpactx

Transcript

00:00HBO's value will be unlocked, by merger, Netflix co-CEO Greg Peters says, bundle details still TBD.

00:08Netflix believes one plus one will equal three in terms of HBO joining its portfolio.

00:14Co-CEO Greg Peters said as much throughout a 45-minute conference call with Wall Street

00:20analysts about the $82.7 billion acquisition of Warner Brothers Discovery Studios and streaming

00:26division. It's quite early to get into specifics, Peters said about how exactly HBO will be combined

00:33with Netflix. He also acknowledged there is a high overlap of subscribers to both Netflix and HBO.

00:41But the deal gives us a lot of levers to think about in terms of packaging, he said. We've also

00:47seen that some of these bundles and models, if you construct them correctly, can have all sorts of

00:53benefits with retention and engagement. Peters said distribution and product changes would be

00:58two ways to realize added value. The combination of Warner and Netflix has puzzled industry observers

01:05and investors given that Netflix's home screen, especially after a recent revamp, is not especially

01:11hospitable to the kind of branded tiles that are defining features of Disney Plus and other streaming

01:16services. Peters also encouraged analysts to think about the many, many, Netflix subscribers globally who

01:23do not currently get HBO Max, which has only recently reached key international territories.

01:29That untapped population, are not getting any value from the HBO Max titles and Warner titles,

01:36he said. We think there's a real opportunity in figuring out how we bring those titles in the right way,

01:42through some combination of plans, Turing etc to unlock the value in those assets.

01:48HBO's brand and programming are, clearly valued, Peters said. We believe that actually having more

01:55room to figure out how we allocate, you know, that content across a range of offerings, how we think

02:01about bringing that into our plans, uh, of offering today, will actually unlock value that isn't being

02:07unlocked today. And one of the most sort of obvious, I think, things to think about here is that we

02:13believe we've got the best tool for connecting incredible stories with people around the world,

02:17and we think actually bringing more of that Warner Brothers content into that tool,

02:22if you will, will just unlock value in and of itself.

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