This is a joint action that no one expected.
Sources tell Hollywood Reporter Warner Bros. Discovery is actively In talks with Netflix to license HBO shows — including NOT SAFE — to Netflix. Such a deal would be considered a stunning move for the two big-money rivals, but neither immediately responded to THR Tuesday night regarding a potential licensing deal Request for comment.
If the deal goes through, licensed content will stream on Netflix and the newly rebranded Max. It will be the first time that HBO’s highly regarded original series will air on a rival US streaming platform
HBO rarely licenses its original series to companies other than its sibling companies. For example, Sex and the City was sold syndicated (heavily edited) to sister company TBS (and later the other basic cable networks). During Richard Plepler’s tenure as CEO, HBO licensed The Sopranos, Six Feet Under, Deadwood and The Wire, etc. Amazon didn’t have its own streaming platform at the time.
HBO insiders opposed the idea of licensing HBO programming to rival Netflix, sources said, but in the end Warner Bros. Discovery finance executives won, sources said. Such a licensing deal would prove beneficial for HBO, as its prized titles could reach a whole new audience. This will also help improve WBD’s margins. After Discovery took control of the former WarnerMedia, the combined company ended the most recent first quarter with nearly $1 billion in debt. WBD layoffs continued on Tuesday, with the longtime head of TCM among those affected by the latest round of layoffs led by David Zaslav .
As part of WBD’s cost-cutting efforts, the company has pulled some underperforming HBO titles from Max and licensed many of them, including the pricey Westworld – Free to ad-supported streaming to make up some lost revenue.
While it’s still considered shocking that an HBO title might be on Netflix, the move isn’t unprecedented. Just a few years ago, Paramount Worldwide CEO Bob Bakish licensed some of the company’s streaming hits globally to better expose them to a wider audience. For example, South Park was sold to Max, who also shared Rick and Morty with Hulu. ViacomCBS at the time also licensed Yellowstone to Peacock on an exclusive deal, something Bakish later regretted.
Deadline was first to report this news.
