By Kayla DeKraker
“If you can’t beat them, join them” seems to be the approach companies are taking when it comes to streaming, but, as The Hollywood Reporter points out, linear TV brands still matter “a lot.”
The most recent example? Warner Bros. Discover re-rebranding streaming service Max to HBO Max as it “lean[s] into one of the oldest brands in linear TV” while providing the on-demand perks of streaming.
“As we have articulated this new strategy publicly over the last few months we have received commentary for many of our fans and observers, who have suggested that the HBO brand should therefore return to the name of the service,” said Casey Bloys. “Well, while they were grumbling, we were doing our own assessments. My team and I are well aware of what the HBO brand means to the industry and to consumers.”
Sunaina Sharma, executive strategy director at Landor, calls this reversal a “flashing neon sign pointing to a critical juncture in the streaming landscape that the ‘content is king’ mantra is dead; brand equity now reigns supreme.”
CNN is taking notes, with its upcoming streaming platform simply being called CNN to maintain its brand identity. CEO Mark Thompson called it “One simple way to explore the very best of CNN journalism on your phone, your connected TV, or other digital device.”
ESPN, similarly, will release a streaming platform later this year called…ESPN.
“There’s power in our name and there’s trust in our name, including, by the way, from the younger generation who love ESPN, and they see us as a digital first brand,” said Jimmy Pitaro, ESPN chief. “ESPN is the place of record, and we represent the very best in sports. So that’s what we’re calling it. ESPN. Simple, straightforward, clear.”
Fox is also turning to streaming with its upcoming “Fox One” platform but doesn’t want it to replace its linear TV portfolio.
“Set to launch ahead of football season, Fox One will look to complement, rather than cannibalize, its linear portfolio. Fox stated that all existing traditional subscribers will have access to Fox One, ensuring the platform does not compete with distribution partners,” analyst Robert Fishman said.
Related: Did Streaming Kill the Entertainment Industry?
It makes sense why channels are flocking to create streaming platforms. Streaming wins by a long-shot in viewership compared to all other options. Nielsen’s The Gauge shows that last month alone, it accounted for 44.3% of viewership. Cable fell far behind with viewership at 24.5%, while broadcast pulled 20.8%.
Netflix is to thank for the streaming trend, which started years ago. Statistica said, “Beginning with the success of Netflix’s all-you-can stream model, there has been a dramatic shift in TV consumption over the past decade.”
But streaming is by no means perfect. Pricing continues to rise, leaving some customers to choose ad-supported options. However, streamers believe they are worth the price.
“For a decade in streaming, an enormously valuable amount of quality content has been given away well below fair market value. And I think that’s in the process of being corrected,” explained Gunnar Wiedenfels, Warner Bros. Discovery finance chief, adding, “We’ve seen price increases across essentially the entire competitive set.”
Time will tell how traditionally linear TV brands moving into streaming will affect companies and whether the market will thrive or become over-saturated.
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