Warner Bros. Discovery to Split After Streaming Strategy Falls Short

The concept appeared straightforward two years ago.

Following the high-profile merger between WarnerMedia and Discovery, executives unveiled plans to merge two distinct programming styles into a single compelling streaming platform known as Max.

The strategy was to pair HBO’s premium scripted originals, such as “The Last of Us” and “Succession,” which encourage focused evening viewing, with Discovery’s extensive library of unscripted, casual cable programming. The idea was that viewers would subscribe for HBO’s hits and keep the service running throughout the day with shows like “The Property Brothers” and “Naked and Afraid.”

At the time, Warner Bros. Discovery’s CEO described the combination as a powerful duo.

However, it has become evident that Discovery’s programming never truly resonated with the streaming audience.

On Monday, the company revealed plans to divide into two separate entities. One will manage cable networks such as TNT and CNN along with Discovery’s legacy brands including Food Network, HGTV, TLC, and the Discovery+ streaming service. The other will focus on HBO, HBO Max, and the Warner Bros. and DC studios.

The CEO emphasized that the split aims to create more agile and focused companies better positioned to maximize value. This move reflects the harsh realities of the cable industry’s rapid decline in viewership and revenue. Competing with streaming giants offering unlimited content packages is no longer seen as an effective approach. Similar restructurings have been announced by other media companies in recent years.

Data collected over the past two years reveals that Max subscribers predominantly watch HBO originals like “The White Lotus,” blockbuster films, and classic Warner Bros. series such as “Friends” and “The West Wing.” In contrast, most viewers have largely ignored Discovery’s extensive catalog of reality and lifestyle shows, with few exceptions like content from the ID cable network.