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HBO Max-Paramount+ Bundle Targeted by Subscribers in Skydance Lawsuit
The Hollywood Reporter • • business
Key Points:
- Consumers have refiled a lawsuit challenging Paramount’s $110 billion merger with Warner Bros. Discovery, alleging the deal consolidates excessive power in Hollywood and harms competition in streaming, TV news, and theatrical production.
- The complaint highlights Skydance's plans to bundle HBO Max and Paramount+ by early 2027, consolidate operations to save $6 billion annually, and unify the streaming services under one owner, reducing independent competition.
- The lawsuit argues that the merger limits consumer choice by eliminating competition between the two platforms, potentially leading to higher subscription costs and fewer programming options despite the presence of other competitors like Netflix.
- Skydance plans to achieve cost savings through layoffs, real estate consolidation, and increased use of AI, while still committing to $30 billion in annual content spending, aiming to optimize distribution and monetization across combined platforms.
- The case has been dismissed twice previously, and this refiling is considered the plaintiffs’ final opportunity to amend their complaint in federal court.
