Skydance will launch an HBO Max and Paramount+ streaming bundle in early 2027, according to The Next Web. The company revealed this plan on 9 November alongside its first financial results since Paramount bought Warner Bros. Discovery. Chief executive David Ellison and co-CEO Ynon Kreiz outlined the upcoming strategy in a shareholder letter.
Key takeaways
- Skydance will sell HBO Max and Paramount+ as a combined package starting in early 2027.
- The company aims to merge backend technology for both platforms within a year of closing.
- Paramount revenue rose 5 percent to $7 billion for the quarter covering Paramount only.
- Jeremy Latcham takes over as head of DC Studios on 1 December.
What to expect from the streaming bundle?
Skydance has not yet announced a price for the upcoming streaming bundle. The company stated it will share more details regarding pricing and service plans in the coming months. Moving Pluto TV onto the Paramount+ platform took about 18 months, but leaders expect a much quicker integration this time around.
“We expect to bring Paramount+ and HBO Max together much faster, aiming to align our backend systems within a year of closing,” Skydance wrote in the letter.
How do skydance earnings and AI plans look?
Revenue for Paramount rose 5 percent to $7 billion for the quarter, while adjusted EBITDA reached $1 billion. Paramount+ ended the period with 82.2 million subscribers, marking a 6 percent increase from the previous year. Also, the combined reach of Paramount+, HBO, and HBO Max totals 203 million subscribers, though that figure includes overlapping accounts.
On the earnings call, Ellison discussed plans to use AI tools for workflows and coding to help achieve at least $6 billion a year in savings within three years. He compared AI's potential impact to the introduction of computer-generated imagery in the early 1990s, while noting that AI will never replace human artists.
What happens next?
The newly formed company carries $87 billion of gross debt and roughly $10 billion in cash following the transaction. Executives aim to lower net debt to three times annual adjusted EBITDA by the end of 2029. Meanwhile, leadership changes at DC Studios will take effect on 1 December as James Gunn and Peter Safran step down, making way for former Marvel Studios executive Jeremy Latcham.
Frequently asked questions
Skydance plans to sell HBO Max and Paramount+ as a bundle starting in early 2027.
Paramount+ finished the quarter with 82.2 million subscribers, which is a 6 percent increase from the previous year.
The transaction left Skydance with $87 billion of gross debt and about $10 billion in cash after closing.
Former Marvel Studios executive Jeremy Latcham takes over as the head of DC Studios on 1 December.
Skydance aims to align the backend systems of Paramount+ and HBO Max within a year of closing.
Based on reporting by The Next Web. Read the original article
