‘Content dictates success’: Max launches into a crowded streaming market

Content is king when it comes to streaming services, and as the battle for third-party rights heats up in Australia, Max enters the marketplace today with a deep, rich catalogue of original content that it owns.

According to Brooks, original libraries of programming from HBO, Warner Bros, DC, and Discovery, mean that Max launches into Australia with an unfair advantage over its rivals.

“I think the key is obviously our proven record in terms of what we produce, particularly on a premium drama front,” Brooks says of Max’s chances.

“I think we’ve got a service that will consistently deliver incredible drama. The work that the HBO team do globally is incredible, and their hit rate is second to none. So, I think we have a service that Australian consumers can absolutely rely on delivering consistent, great content.”

This sounds convincing, but viewer habits are ingrained, and there’s no denying Max is late to the game. So, with long-term content deals already in place with Foxtel and Nine, why strike out on its own now? And, why launch in 69 other territories before Australia?

Brooks denies that exclusive content deals with Foxtel have prevented a local launch until now.

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“We’ve been planning this for many years,” Brooks says. “We’re obviously in a growth process with our global expansion of streaming – that’s been well documented. And Australia was always on the roadmap for that global expansion, and a really key part of that global expansion. So we’ve actually been planning this for some time.

“Around this time, we’ve tailored all of our deals, our output deals, to position ourselves to be able to launch the streaming service right now.”

Although Max is launching as a stand-alone service, it has maintained its relationships with both Foxtel and Nine.

Foxtel is named as a ‘launch partner’ to Max, but its hardly a perfect union. As of today, all the HBO, Warner Bros, and Discovery content will be removed from both Binge, Foxtel’s streamer, and its linear channels. (Max also pinched Binge’s head of content, John Beohm.) However, residential subscribers will have access to the Max service for free, with the tile baked into the menu ecosystem for ease-of-transition – for the time being, at least.

Brooks refuses to get into the length of this deal, but stresses the 20-year partnership between Foxtel and WBD. “We felt like this was a good approach at launch,” he says of the deal.

Foxtel announced a new “multi-year deal” with WBD in early 2023, part of which was exclusive rights to HBO content in Australia. That exclusively is no more. At the time of the deal Foxtel Group MD Patrick Delany noted that the partnership has “optionality at its core”, saying “a unique business model like ours that covers multiple platforms and brands, means we can partner for the long term.”

Brooks elaborates. “We’ve got a lot of loyal fans of our content that we wanted to make sure continued to have access to it. So I think for both businesses, the launch deal’s a really interesting one.”

Another ‘interesting’ deal sees Nine currently sell advertising for Max’s ad-supported tier. WBD already has a joint venture with Nine, for the 9Rush digital channel, and what Brooks calls “extensive content licensing” deals already in place.

“We looked at advertising and obviously digital advertising is something that you can see huge growth in the industry and a huge focus for streaming services globally. And for us, really it was about extending our existing partnership with Nine and utilising the reach that they have and the expertise that they have across multiple platforms.

“We have a substantial partnership with them already. So it was a sort of a natural progression, but we liked their scale and their approach.”

Launching into a crowded streaming market is a difficult ask, but Brooks feels the library of quality content will insulate it in a manner than won’t protect its competitors.

“Content really dictates the success,” he says of Max’s future in the market. “I think the platforms that consistently please their fans by delivering and putting excellence forward will continue to thrive above others. I think what’s going to be interesting is the battle for third-party content, for some of the services. Where do they get the content from?

“That’s obviously what we’re reasonably confident about going into this, is that we’ve got a great consistent flow of top quality premium content. What I’m interested in watching is these third-party content streams and how that impacts other players in the market.”

Michael Brooks, WBD’s local general manager

Local productions are also vital in bringing audiences to new streaming services. WBD currently has no bespoke Australian programs in the pipeline for the Max streaming service, but it plans to start local production in the future. It already has a local production business, which has created programming for the Discovery Network, plus numerous other streaming platforms, for the past eight years. It also makes a number of theatrical features in Australia.

“So, we are absolutely supportive of production,” Brooks explains. “Our content here has been licensed” [to other platforms], “so we need to fully understand the behaviours of our consumers and then be able to tailor-made commissions that are going to work for them. So, it will happen.

“We will have local production commissions for Max, but it’ll take some time. We’re not going to launch into it straight away. We really need to understand what our local fans are looking for and make sure that we get that right.”

Likewise, Brooks said Max won’t be partaking in the sporting rights land grab infecting the streaming TV world.

“We’re really focused on premium drama and films, and our factual slate across Discovery, and building out our franchises,” he confirms.

“That’s really the focus for us.”

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