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The streaming industry has transformed the way we live, offering audiences more entertainment options than ever. As the industry becomes more crowded, it’s natural for brands to fight harder to stay relevant. And one way to do that is to consolidate offerings.
In our BRAG Brand Insights, we discussed how HBO Max and discovery+ are very different brands. While they had awareness that ranked just below leaders, they simply didn’t have the customer attachment that others had. Meanwhile, thanks for a library of popular content, HBO Max did have that. By merging the two to become Max, Warner Bros. not only potentially saved a dying brand but also created a streaming service with a broader, more diverse content portfolio.
And now Disney+ also announced they would add Hulu programs with eventual plans to merge the two in 2024. While these two services aren’t as drastically different as HBO Max and discovery+, the figure above shows that Hulu’s installs lag significantly behind Disney+ despite similar Brand Power (defined in the BRAG Index as install consideration at the beginning of Q1 2023). Like the Max merger, Disney and Hulu’s combined content portfolio can provide a one-stop-shop for entertainment.
The end goal of these consolidations is to not only spark growth but to also play in the same stratosphere as Amazon Prime Video and Netflix, the two clear leaders in the streaming industry. And what these brands currently have is a mixture of brand equity AND a strong content portfolio that has them above the rest.
By merging, streaming brands diversify content - which helps grow users and brand awareness. And ultimately compete with the big guys.
This strategy of consolidation is one example of “Product-led growth” which is one of FOUR winning strategies highlighted in the BRAG Index 3 coming out on Wednesday! Stay tuned to find out the other 3.
