Will HBO Max work and will consumers pay?
I'm Kim Masters and this is the Hollywood breakdown joining me as bounty of the Hollywood reporter and Matt. We've known that this industry is disrupted and Warner brothers and Warner media. Its parent are sort of the ultimate case study. You're right now of what is going on. Warner Brothers was the premier studio in this industry for so many years and being the chairman of Warner Brothers was the biggest deal imaginable and they have now announced that an Sarnoff who who comes from the B._B._C. America America and has really good experience and is very well regarded but is completely almost completely unknown in Hollywood is going to be the chairman of Warner brothers and at the same time the Warner media is announcing in the launch of this H._B._O.. Oh Max which is the streaming service that they have been building toward and they are pulling programming from all over the place to service this thing. This is a huge priority. So first of all your people were going to have to look at that they do. I need this will this H._B._O.. Max Idea Work and at the same time within the industry. There's a question of well gee. What does this mean for Warner Brothers? I mean is Warner. Brothers now going to be subservient to the streaming service and does being chairman of Warner Brothers really have any kind of clout and prestige or are you just going to be taking orders effectively from Bob Greene Blah who runs the streaming service as well as these other cable channels and H._B._O.. He reports to <hes> John Stanky the. Head of Warner media as does and Sarnoff but it's not so clear what it all means in terms of who has power this really does represent a sign of the Times entertainment because when A._T.. And T. bought the Time Warner assets it was very clear that the crown on jewel was not warner brothers. It was H._B._O.. Because they could leverage H._B._O.. To create a global streaming service that will hopefully in their words compete with net flix and that's what every conglomerate is trying to do right now. They're trying to leverage with their assets are create new stuff and go head to head with Netflix so you're seeing warner media pullback a lot of the content that was out there most notably friends which has been streaming on Netflix is now going. Going to switch over to this new H._B._O.. Max they're gonNA start doing with a bunch of other shows on the C._W.. On Turner on the Turner Networks Like T._N._T.. And T._B._S. Some C._N._N.. Content this is all going to be funneled into this H._B._O.. Bill mack streaming service will be pitched as an add on to H._B._O.. Or as its own thing a little bit more expensive than the traditional H._B._O.. Costs currently and that's where we're at right now because comcast is doing the same thing with the N._B._C.. Universal shows like the office just pulling it away from net flicks doing their own thing. Disney is launching their own thing. We're going to get into a very stratified ecosystem where the streaming services are tops and the contents suppliers are going to be the studios that they own and. Hopefully others they think I mean has made a Fortune Selling T._v.. Shows the T._v.. Division has been lead you know Big Bang theory two and a half men all of these shows in different networks very profitably and enjoying all of the reaping all of the rewards that followed followed and they just sold a huge project to Netflix Sandman so they're still looking to get that cash coming in the door obviously the I don't even know how you sort it out and I think more importantly people in the industry. I don't know how you sort it out if I'm making a T._v.. Show and Warner Brothers is making that show at what goes to H._B._O.. Max what goes somewhere else. What do I sell to C._B._S.? A._B._C. or or Hulu or whatever so I think it's it's almost like this dizzying situation within the industry of figuring. Bring out who is going to emerge victorious and how these things are going to be sorted and that's that's a potential big change for Warner Brothers which as you mentioned has been this people say there are the arms dealer of Hollywood in the sense that they have sold everybody but if you look at what Disney is doing Disney is very purposefully holding back a lot of their stuff and they are trying to create an ecosystem around this new Disney plus streaming service that will be the one stop shop for Disney. Now Disney has a very strong consumer rebrand and people know Disney and they want Disney oriented content. It's not quite the same for Warner Brothers. They don't have that brand name they just you wouldn't the average person on the street wouldn't even know that one brothers produced two and a half men yet. It's probably the biggest revenue generator that the company has so I just I think it'd be very interesting to see how warner's approaches this ecosystem and who they sell to and who they don't and from the consumer standpoint of course the question is how much does this cost they said it will.