Paramount-HBO Max streaming combination may give you more content, but at what cost?

Paramount has received the green light to close its $81 billion mega-merger with Warner Bros. Discovery. The deal will bring together two of Hollywood’s five remaining major legacy studios. HBO Max and cable networks such as CNN will also come under the same corporate roof as CBS and the Paramount+ streaming service. But what will the merger mean for consumers?

One App for All

One of the most obvious potential benefits is convenience. If the companies eventually combine their streaming services as planned, consumers may not have to maintain multiple apps to access their favourite shows and movies. Instead, HBO Max, Paramount+ and CBS content could become available through a single platform. That would give subscribers a much larger library to choose from. Instead of paying separately for Paramount+ and HBO Max, consumers could eventually have access to both libraries through a single subscription.

The combined service could bring together franchises and shows such as HBO's Game of Thrones, The Pitt and The Sopranos with Paramount's Star Trek, Yellowstone, NCIS and South Park, along with films from Warner Bros. and Paramount.

Fewer streaming choices

The merger could also mean fewer streaming choices for consumers. Instead of choosing between Paramount+ and HBO Max as separate services, consumers could eventually have one fewer independent streaming platform to choose from. Lesser competition in the market won't augur well for the consumers in the long run and the combined company will have greater pricing power.

Pay even if you won't watch

For people who already subscribe to both services, the combination could be useful because they may eventually get access to both libraries under one roof. But consumers who subscribe to only one service could end up paying for a much larger library containing plenty of content they may never watch.

More content, but potentially higher prices

Another concern is so-called "stream-flation" — the steady increase in streaming subscription prices. Many major streaming services have already raised their prices in recent years. Paramount is also taking on billions of dollars in debt to finance the deal, potentially increasing pressure on the company to cut costs and generate more revenue from its streaming business. That raises a key question for consumers: Will combining the two services actually save them money, or will the larger content library come with a higher subscription price?

For now, the final pricing structure of the combined streaming service will be crucial. If the company bundles the services at a price that is lower than maintaining separate subscriptions, consumers who use both platforms could benefit. But if the larger service comes with a significant price increase, the additional content may not translate into better value for everyone.

What about jobs?

The merger could also have consequences beyond subscription prices. The Washington Post has reported that the new ownership could look for ways to reduce costs, including potential layoffs and downsizing of overlapping operations.

For consumers, the Paramount-Warner Bros. Discovery deal therefore presents a mixed picture: a potentially much larger streaming library and a simpler viewing experience, but also the possibility of higher prices, fewer choices and significant restructuring across the two companies.