This week, WarnerMedia CEO John Stankey spoke about the corporate giant’s direct-to-consumer streaming service which seems to be on track for a beta launch late next year as Warners faces a new future following its merger with AT&T.
Like Disney with its Disney+ service, Warners is going to be taking back much of its own content that it was licensing out to existing third-party streamers like Netflix and Hulu. Speaking with Wall Street investors and analysts, Stankey says a lot of those services will see their content libraries ‘get a lot thinner’ in the next two years:
“The dynamic those incumbents are playing with are still 75% to 80% of viewing tonnage is (from) that licensed content. Their pressure is they’ve got to make this pivot to get people off of viewing content that sits in our library, or the Disney library, and get it onto their own.”
Stankey said WarnerMedia’s offering won’t be so much a ‘warehouse’ but rather a service that mines the media company’s “great brands.”
It will feature three tiers of programming – a movie-centric basic tier, a middle tier with original content and theatrical blockbusters, and a third with all that plus a deeper library of content including kids-and-family fare and comedy along with potential third-party programming.
He also confirmed the shuttering of DramaFever and FilmStruck were just the start as the culling of its various niche direct-to-consumer services has begun so as to incorporate everything under the one banner.