Cutting costs has a cost: Dramatic negative responses on social media should make it clear that HBO Max is regarded highly by many consumers. Zaslav’s methods may be effective at saving money, but they could alienate users and tarnish HBO’s hard-earned reputation.
- HBO hasn’t just survived the transition from linear to digital—it’s thrived. Its expansive catalog of old HBO shows, foreign films, and heavily curated originals have earned it a reputation as having some of the best original content on offer—the envy of streamers like Peacock and even Netflix.
- Unscripted reality series have been a boon for Netflix, but are relatively untapped ground for HBO. The new format may produce cheaper content that boosts watch time, but it could also make HBO less distinct from streaming competitors with a similar strategy.
- Focusing less on carefully chosen scripted series and more on broadening its range of content could be a play to appeal to advertisers. Netflix and Disney+ have attracted hefty advertiser interest thanks to their broad content catalogs that span age demographics.
The big takeaway: A distinct reputation for high-quality originals is crucial as uncertain economic times push consumers to cut video streaming costs. Warner Media has a mountain of debt to summit, but doing so at the cost of HBO’s reputation could harm its long-term growth.
This article originally appeared in Insider Intelligence's Marketing & Advertising Briefing—a daily recap of top stories reshaping the advertising industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.