Warner Bros. Discovery is reorganizing its business structure following signs that its “all-in-one” streaming strategy failed to resonate with audiences as intended, the New York Times reports.
The company announced it will split into two separate entities: one focused on cable networks and Discovery’s legacy properties, and the other on premium content such as HBO, Warner Bros. films, and DC Studios.
This pivot marks a notable shift from the company’s original plan launched two years ago, when the newly merged WarnerMedia and Discovery introduced Max — a unified streaming platform that combined HBO’s high-end scripted shows with Discovery’s broad catalog of unscripted, reality, and lifestyle programming. The idea was to attract viewers with premium series like Succession and The Last of Us, while keeping them engaged throughout the day with content like The Property Brothers and Naked and Afraid.
However, data from Max usage has shown that most subscribers gravitate almost exclusively toward HBO programming, studio movies, and well-known Warner Bros. titles such as Friends and The West Wing. Discovery’s unscripted content has seen limited engagement, with only a few exceptions. The result has been a quiet sidelining of much of that content within the platform’s interface.
In response, Warner Bros. Discovery will rebrand its flagship streaming platform as HBO Max, restoring a name that emphasizes its most popular content and aims to sharpen its identity in a competitive streaming landscape. The name change and other recent design updates — such as a return to HBO’s signature black-and-white aesthetic — reflect the company’s effort to highlight what viewers consistently watch.
David Zaslav, CEO of Warner Bros. Discovery, acknowledged the evolution in strategy, saying the restructuring will allow each segment to be more agile and targeted. He also emphasized the importance of quality in attracting and retaining subscribers.
“We put ‘HBO’ back in for a reason — people see us as the highest-quality streaming service out there,” Zaslav told investors.
The company’s streaming division has seen positive signs in recent months, including profitability and subscriber growth. In the first quarter alone, the service gained over five million subscribers, bringing its total to 122 million. HBO Max is set to launch in major European markets such as Britain, Germany, and Italy next year, with a goal of reaching 150 million global subscribers by the end of 2026.
Despite this growth, the platform still lags behind industry leaders like Netflix, YouTube, and Amazon Prime Video in total viewing time. Analysts say that Max’s recent success in subscriber retention may be more attributable to strategic bundling efforts — such as pairing with Disney+ and Hulu — than to the depth of its content library.
Industry observers note that the challenge was in merging two very different types of media under one roof.
“These are vastly different products that are aimed at vastly different audiences,” said Stephen Galloway, dean of Chapman University’s film school.
