The first title to be part of the deal, according to Deadline, is Issa Rae comedy Insecure, which ran for five seasons on HBO and ended in December 2021. We hear more titles are being discussed.
According to sources, this is a financial move. We've heard that HBO veterans have opposed the plan, but the company's financial considerations have won out. Insiders emphasize that the deal is still pending and could fall apart, but regardless, it marks a major shift in strategy in the premium pay landscape.
Reportedly, the series will be distributed on a non-exclusive basis, allowing them to still be streamed on Max.
David Zaslav, CEO of Warner Bros. Discovery, has made it known early in his tenure that he is willing to forego exclusivity and license content to increase profits. Earlier this year, Warner Bros. Discovery titles like Westworld were distributed to free streaming platforms like Roku and Tubi.
Insecure itself aired earlier this year on the Warner Bros.-owned cable network OWN. This is a rare recent move for an HBO series to air on basic cable.
HBO made a quantum leap in off-network syndication more than a decade ago when it sold edited versions of Sex and the City to TBS (and then E!/Style), Curb Your Enthusiasm to TV Guide Channel, Entourage to Spike, and The Sopranos to A&E for a blockbuster $200M deal.
In 2014, HBO signed a deal with Amazon Prime Video to license series such as The Sopranos, Deadwood, Six Feet Under, and The Wire. However, this deal was made before Amazon became a competitor for premium originals.
However, this latest move would be a first in the streaming era, especially given the increased vertical integration of all major Hollywood studios. It comes at a time when Zaslav is trying to find new ways to monetize the company's library while continuing with a company-wide cost-cutting plan.
The most surprising facet of the deal is that Warner Bros. Discovery would allow some of its top-notch programming on probably its biggest rival, which probably raised eyebrows throughout the industry. We've come a long way since Time Warner boss Jeff Bewkes compared Netflix to the Albanian military in 2010.
On the other hand, there is the hope that HBO series on Netflix will receive extra attention and reach a new global audience. It also comes just six months after Zaslav took aim at Netflix after becoming unhappy with the way Netflix distributes its payment terms.
Netflix and HBO/Warner Bros. Discovery declined to comment.
