Skydance Confirms a Paramount+ and HBO Max Bundle Is Coming, but Big Questions Remain

For months, streaming fans have wondered what would happen to HBO Max and Paramount+ once they landed under one roof. Skydance’s roughly $110 billion acquisition of Warner Bros. Discovery closed on Oct. 6, putting 2 of the biggest streaming libraries in the business in the hands of CEO David Ellison.

Ellison has said multiple times that the ultimate aim is to blend the 2 services into a single platform. But combining them is a heavy lift in both technology and strategy, and until now there was no timeline for what customers would actually see.

That changed on Monday, Nov. 9, when Skydance used its third-quarter shareholder letter to say that it plans to launch Paramount+ and HBO Max as a single offer as early as 2027. Variety reported that the company promised subscribers access to both services at “even greater value,” with more details on the bundle and its streaming roadmap coming in the months ahead.

The letter is signed by Ellison and co-CEO Ynon Kreiz. Ellison suggested the bundle would be a first step toward a combined service over a longer time frame, which means the early 2027 offer is unlikely to be the final form.

Skydance has not disclosed a price, a name or an app plan for the bundle. According to one report, the early version will keep each service as its own app with its own library, with subscribers paying a single combined price. The company has also said it aims to align the backend systems of the 2 platforms within a year of closing the deal.

There are other loose ends. Skydance did not say whether it will end existing bundles that use these properties, including the one that pairs HBO Max with Disney+ and Hulu. On the earnings call, Ellison said the company would assess whether third-party bundles create value for shareholders.

Paramount+, HBO and HBO Max together account for approximately 203 million subscriptions worldwide, a figure that puts the combined business well behind Netflix but more competitive with Disney and Amazon Prime Video. Paramount+ alone ended September with 82.2 million subscribers, up 600,000 from the previous quarter and 6% from a year earlier.

Average revenue per user at Paramount rose about 14% to $8.69, and the broader direct-to-consumer business generated roughly $2.5 billion in quarterly revenue, up 11%. Adjusted EBITDA in that unit hit $225 million, a 9% margin.

One caveat is that the 203 million figure comes with fine print. Forbes noted that the combined number covers subscriptions across Paramount+, HBO and HBO Max, and that HBO Max has seen subscriber losses that temper the growth story.

The combined library is a big draw. Paramount+ brings ‘Tulsa King,’ the ‘Yellowstone’ franchise and CBS shows, while HBO Max adds ‘The White Lotus,’ ‘House of the Dragon’ and ‘Lanterns.’

Price will be the real test. As of early October, the ad-free tiers cost $13.99 a month for Paramount+ and $18.49 for HBO Max, so any bundle that undercuts that total would be a clear win for viewers. A June consumer study found that about a quarter of consumers would see a $19.99 monthly bundle as a lot more valuable than 2 separate subscriptions, and interest was higher among current subscribers of both services.

The bundle is part of a larger cost and revenue plan. Skydance expects at least $6 billion in annual cost savings within 3 years, partly by combining the 2 streaming services and trimming overlapping spending. It also expects a meaningful majority of revenue and profit to shift from TV to streaming and studios by 2030, as linear viewing and advertising continue to decline.

Leading the direct-to-consumer division are HBO’s Casey Bloys as chief content officer and JB Perrette as chief business officer. They head the division that will handle the rollout of the bundle.

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