With his company set to merge with WarnerMedia, David Zaslav added a new wrinkle to the combined company’s streaming strategy: a free option.
Discovery Inc.’s CEO said the merged company, to be called Warner Bros. Discovery, would eventually offer a single streaming service with three “funnels.” The most expensive tier would be commercial-free, a less expensive tier would include some commercials, and a third tier would be free and come with different programming.
The free tier would be a way to reach more people and make use of a library of shows and movies that paying customers aren’t watching much, Zaslav said on an earnings call Thursday.
“Our objective is to reach everybody,” he said.
Currently, both Discovery, which owns the Discovery+ streaming service, and AT&T Inc.’s WarnerMedia, which owns HBO Max, offer two streaming choices: one with ads and one without. Neither has a free option.