Some Dutch HBO Max users may lose lifetime 50% discount post Paramount Skydance takeover

Dutch customers who signed up for HBO Max at launch may lose the lifetime 50 percent discount they were promised, RTL reports. The quality of series and films is also expected to decline as the service’s new owner, Skydance, moves to cut 5.3 billion euros (6 billion U.S. dollars) in costs.

HBO Max is a streaming platform from Warner Bros. Discovery that carries HBO originals, films, and series. In most markets it relaunched under the shorter name Max. In the Netherlands and Belgium, it kept the HBO Max name because Dutch broadcaster Omroep MAX already owns the rights to “Max.”

The service is now owned by Skydance after Paramount Skydance acquired Warner Bros. Discovery for 111 billion U.S. dollars. The deal left the combined company with about 80 billion dollars in debt. On Monday, Skydance said it plans to cut six billion dollars within three years, mainly by eliminating duplicate roles, reducing marketing, and lowering IT spending.

“An excessive amount was paid for Warner Bros. Analysts say the company isn't worth that much, but the money still has to be earned back. That will be difficult because various conditions were attached to the takeover," said media expert Kirsten Jan van Nieuwenhuijzen. One such condition requires Paramount to produce at least 30 films a year. That would prevent actors and filmmakers from losing their jobs due to the concentration of power.

The six billion of U.S. dollars in cuts is a drop in the bucket, Van Nieuwenhuijzen told RTL. “The acquisition was financed in part by Arab sovereign funds. But they want their money back. Interest costs are also around 6 billion dollars. So you’ll have to cut even more to pay down the debt.”

To reduce the debt, Skydance will likely produce less content, according to the expert. For example, popular series such as House of the Dragon will continue, while other existing series will be cut. “You still need a certain volume to retain customers," Van Nieuwenhuijzen said. This means that the viewers in the Netherlands are likely to see lower-quality programs while paying more.

Early Dutch subscribers who joined when HBO Max launched in 2022 were promised a lifetime 50 percent discount. That discount survived the 2024 relaunch and price increases. Discounted customers continued to pay half price while keeping access to premium video and audio quality features, including Dolby Atmos and 4K.