Warner Brothers Discovery launches new streaming platform 'Max'

Yahoo Finance Live discusses Warner Brothers Discovery's plans to launch their new streaming platform "Max" and details the possible trajectory for the launch.

Video transcript

- HBO Max's official rebrand to Max starts tomorrow. Yahoo Finance's Alexandra Canal, of course, following all of this. Other than the drop of HBO, what can users expect?

ALEXANDRA CANAL: Well, it's all happening tomorrow on Tuesday. The Max platform it's been highly anticipated. We heard some details in April. There's going to be three different pricing tiers.

If you take a look at some of that pricing, we have a $9.99 a month fee for the ad-supported version, 15.99 for the ad-free option, and then a new ultimate ad-free tier for nearly $20 a month. Now that ultimate tier allows four concurrent streams and 4K streaming options. And it's the only new option. The other tiers do match the current pricing of HBO.

Now how this performs is going to be a critical element considering how many challenges Warner Brothers Discovery has faced since that WarnerMedia and Discovery merger last April. Earlier this month, we did see WBD reverse the streaming losses as subscriber numbers came in above consensus estimates. The company has been praised for being able to really cut costs.

We recently heard from Needham analyst Laura Martin who said the fact that Discovery Plus has less churn coupled with the strong content of HBO, that could be the secret sauce needed to be a powerful player in this competitive streaming space. So a big debut at a critical time. We'll see if the subscribers want to sign up for this.

- We will see. Certainly, a lot of pressure on Zaslav and team there. All right, thanks, Ale.