The Strategy Behind Streaming Platforms Acquiring TV Franchises: A Case Study of HBO Max and CW

Streaming platforms like HBO Max are increasingly acquiring popular franchises from traditional networks, such as Comedy Central. This trend reflects a broader strategy in the entertainment industry to expand content libraries and attract subscribers. As competition among streaming services grows, acquiring established franchises allows them to quickly enhance their offerings and draw in established audiences. However, the decision to leverage their own content, such as Warner Bros. Discovery's CW series, is complex and influenced by various factors.

Common Practice in the Streaming Industry

The acquisition of beloved TV series by major streaming platforms, such as HBO Max buying from Comedy Central, is becoming a common strategy. By doing so, these platforms can rapidly expand their content library and capture a larger audience base. This approach is driven by the intense competition among streaming services, each striving to offer unique and quality content to attract and retain subscribers.

Why Does Streaming Convergence Seem Uncommon with CW Series?

Warner Bros. Discovery, which owns HBO Max, has the potential to leverage their own CW series. However, several factors influence their decisions regarding content acquisition and utilization:

Content Strategy

Warner may choose to prioritize original content or exclusive partnerships over adding existing CW series. Their strategic goals may guide this decision, favoring the development of new, original content over acquiring existing series.

Licensing Agreements

Some CW shows are under licensing agreements that limit their availability for streaming on HBO Max, or they might be available on other platforms. This means that even if HBO Max has the rights to CW series, those series might be exclusively placed on another platform.

Target Audience

The target demographic of CW and HBO Max may be different. Warner may view CW's audience as more aligned with the CW brand and may focus on content that better aligns with their primary subscriber base.

Brand Positioning

HBO Max might want to distinguish itself from the CW brand, which is known for a different style of programming often aimed at a younger audience. This strategic positioning could guide their content choices.

Specific Example: CW Series on HBO Max

While the acquisition strategy is not straightforward, HBO Max has secured exclusive rights to some CW series that premiered in recent years. Shows like Batwoman, Nancy Drew, and Katy Keene are currently available on HBO Max. These rights could extend to future CW series, but the terms and conditions of these licenses play a significant role in the decision-making process.

Unfortunately, things are not as simple as they seem. A large portion of CW's original content, such as the 2019–20 season shows and new series heading into the future, are exclusively on HBO Max. However, shows from earlier seasons, like Batwoman, Nancy Drew, and Katy Keene, are now available, giving audiences immediate access to some of their favorite CW series.

This case study highlights the complex considerations that go into content acquisition by major streaming platforms and the nuanced nature of media licensing agreements. As streaming platforms continue to compete, the strategies they employ will likely evolve, driven by a combination of content strategy, licensing, audience targeting, and brand positioning.

Overall, while the acquisition of content from other networks is becoming more common, the specific decisions made by streaming giants like Warner Bros. Discovery will depend on broader strategic goals and market conditions.