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Netflix chief Ted Sarandos says 'Max' should have just been called 'HBO'

Netflix chief Ted Sarandos says 'Max' should have just been called 'HBO'

  • 19.03.2025 21:36
  • businessinsider.com
  • Keywords: HBO, Max

Netflix co-CEO Ted Sarandos criticized Warner Bros. Discovery for renaming HBO Max to "Max," calling the move a mistake. He believes the HBO brand, known for original programming, should have been retained. Sarandos expressed confidence in Netflix's ability to compete with streaming rivals like Amazon Prime and Apple TV, citing their diverse content library as a key advantage.

Apple NewsApple ServicesNFLXsentiment_satisfiedWBDsentiment_dissatisfied

Estimated market influence

Netflix

Netflix

Positivesentiment_satisfied
Analyst rating: Buy

Ted Sarandos discusses Netflix's position in the streaming market and its competition with other services like Amazon Prime and Apple TV.

HBO

Negativesentiment_dissatisfied
Analyst rating: N/A

HBO rebranded to Max, which Ted Sarandos criticized as a misstep. This could have negative implications for HBO's brand recognition.

Warner Bros. Discovery

Warner Bros. Discovery

Negativesentiment_dissatisfied
Analyst rating: Buy

Renamed their streaming service from HBO Max to Max, which Sarandos believes was a mistake, potentially affecting their market position.

Amazon Prime

Neutralsentiment_neutral
Analyst rating: N/A

Mentioned as a competitor but no specific impact mentioned.

Apple TV

Neutralsentiment_neutral
Analyst rating: N/A

Mentioned as a competitor, but no specific impact noted.

Context

Analysis: Ted Sarandos on HBO Max and Netflix’s Market Position

Key Facts and Data Points:

  • Ted Sarandos' Critique: Netflix co-CEO Ted Sarandos criticized Warner Bros. Discovery for renaming its streaming service to "Max" instead of retaining the "HBO" brand.
    • He noted that HBO was originally seen as the leader in original programming but lost focus after rebranding.
  • Rebranding Impact:
    • The merger of Warner Bros. and Discovery in 2021 led to the renaming of HBO Max to simply "Max."
    • Sarandos believes this change diluted the brand's identity and consumer focus.
  • Streaming Service Proliferation:
    • The market has seen a surge in individual streaming platforms, including Amazon Prime, Max, and Apple TV.
  • Netflix’s Competitive Edge:
    • Netflix boasts over 300 million subscribers as of the latest data.
    • Sarandos highlights Netflix's investment in personalization and its diverse content library across genres.

Market Dynamics:

  • Brand Identity vs. Consumer Focus: The rebranding of HBO to "Max" has caused confusion and diluted the brand's original strength in premium content.
  • Content vs. Competition:
    • Sarandos downplays concerns about competition from Amazon Prime and Apple TV+, citing Netflix’s superior content production and global reach.
    • He questions Apple’s long-term strategy in streaming, calling it a "marketing play."

Competitive Landscape:

  • HBO Max’s Misstep: The decision to rebrand HBO as "Max" has likely weakened its market position by losing the clarity and prestige associated with the HBO name.
  • Netflix’s Strengths:
    • Netflix’s massive content library positions it as a dominant player in streaming, particularly in genres like documentaries and dramas.
    • Its personalization strategy ensures a highly tailored viewing experience for subscribers.

Strategic Considerations:

  • Long-Term Effects:
    • Sarandos suggests that HBO Max’s rebranding may have long-term negative effects on its ability to compete with Netflix and other streaming platforms.
  • Regulatory Impact: No direct mention of regulatory issues, but the competitive dynamics in the streaming market could potentially influence future industry consolidation or regulatory scrutiny.

Future Outlook:

  • Netflix’s Confidence:
    • Sarandos expresses confidence in Netflix’s ability to maintain its lead due to its extensive content library and global subscriber base.
    • He emphasizes that Netflix is not limited to a single genre, offering something for everyone.
  • Potential Threats:
    • While he doesn’t see immediate threats from Amazon Prime or Apple TV+, Sarandos acknowledges the uncertainty of future competition without deeper insights into rival strategies.

Conclusion:

  • Ted Sarandos’ comments highlight the importance of brand identity and content strategy in the highly competitive streaming market.
  • Netflix’s focus on personalization, genre diversity, and massive subscriber base positions it as a strong contender against emerging competitors like Amazon Prime and Apple TV+.