Harry Potter will return to screens in a new HBO Max series as part of a reshuffle of Warner Bros Discovery Inc (NASDAQ:WBD)’s streaming service, though investors seemed underwhelmed by the news.
Each series will be “authentic” to one of the books, according to HBO, with the seven books by JK Rowling (published by Bloomsbury Publishing PLC) suggesting there could be at least as many years worth of programming released on the new Max streaming platform.
Your Hogwarts letter is here.
Max has ordered the first ever #HarryPotter scripted television series, a faithful adaptation of the iconic books. #StreamOnMax pic.twitter.com/3CgEHLYhch
— HBO Max (@hbomax) April 12, 2023
This platform, set to be launched on May 23, will incorporate Warner Bros’ existing Discovery+ and HBO Max sites, after the two firms merged last year.
Dubbed ‘Max,’ the new platform’s basic package costs US$9.99 and ranges up to a premium package of US$19.99 per month.
This compares to plans at rival Netflix Inc (NASDAQ:NFLX) ranging from an ad-supported US$6.99 up to US$19.99 a month, or Disney+ from The Walt Disney Company (NYSE:DIS) that begins at $7.99 and with ad-free at $10.99 a month.
Warner's long-awaited launch is "set to intensify" the so-called streaming wars, said Hargreaves Lansdown analyst Susannah Streeter, with a strong array of content from its raft of brands.
“Warner Bros is hoping a combination of HBOs scripted series, reality TV from Discovery and new creations based on super-popular series like Harry Potter and Game of Thrones will help it keep up with the pack.”
Investors seemed “underwhelmed” by the news though, Streeter added, prompting Warner Bros’ stock to fall almost 6% on Wednesday after the announcement.
Warner Bros’ had faced a disappointing uptake in its streaming services in the fourth quarter, attracting 96.1mln subscribers - below analyst’s expectations.
Despite the Nasdaq-listed company’s bid to attract more viewers, Streeter suggested investors may be deterred by the high costs and “constant flows of cash” needed to prop up streaming ventures.