NHL hockey coming to Turner networks & HBO Max
In a new seven-year pact, the NHL has agreed to a distribution deal with WarnerMedia, including Turner networks and HBO Max, starting with the 2021-2022 season. The deal brings 72 regular season games, the NHL Winter Classic, the Stanley Cup playoffs and final to TNT and TBS. In addition to having the games on broadcast networks, the deal includes live streaming and simulcast to HBO Max. This move follows in the recent footsteps of other major OTT platforms that have added live sports programming including Amazon Prime, Paramount+ and Peacock.
The NPD Take:
- Live Sports programming is the next big hook to increase engagement with SVOD services. By adding in NHL programming to HBO Max, the service can expand reach and drive engagement beyond its library of original programming and deep catalog content.
- The migration of live sports onto SVOD platforms will further accelerate cord cutting.
HBO Max announces ad-supported pricing and launch
WarnerMedia announced this week the launch of the ad-supported HBO Max plan, coming in June 2021 for $9.99. The offering is $5 less than the ad-free plan which launched nearly a year ago in May 2020. Ads will only be inserted into HBO Max exclusive content and will not be included in broader HBO offerings. One major catch is the ad-supported plan will not include the 2021 theatrical films the same day they hit theater as is currently available
The NPD Take:
- While the new pricing is higher than other ad-supported plans of competitive services the value proposition is different. That is, ads will not be as pervasive, and viewers will get access to traditional HBO programming.
- While the pricing fits the legacy content distribution model and offers differentiation versus other streaming offering, it remains pricey. Further, the broader competitive set will put viewers in a position to rationalize subscriptions. Pricing around 2x the cost of other ad supported services will generate consumer pause.
Roku takes on Google
Roku hits the pause button on YouTube TV. On Friday, Roku removed the YouTube TV app from the Roku channel store amid continued tensions between the two companies over recent negotiations. Current YouTube TV subscribers can still access the platform, for now. Some issues at hand include search results, hardware specs and access to consumer data.
The NPD Take:
- Disputes among content providers and distribution partners aren’t new but they are different. No longer are the disagreements just about distribution fees, but coveted items such as consumer data, access and placement are also in the mix.