Entertainment

    Max launches in Australia with bold profit outlook

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    Warner Bros Discovery's (NASDAQ:WBD) streaming service, Max, has officially launched in Australia, with its global chief, Jean-Briac Perrette, predicting profitability within two to three years.

    The platform's entry disrupts the local media landscape, ending a two-decade HBO content deal with Foxtel and pulling popular shows like Game of Thrones and Succession from Binge.

    Max joins a competitive market led by Netflix (6.2 million subscribers), Amazon Prime Video (4.8 million), and Disney+ (3.1 million), according to Telsyte.

    Max's ad-supported tier is free for Foxtel's 1.4 million cable customers, with research firm Ampere Analysis estimating that half may subscribe.

    Perrette envisions Max as a top-three global streamer, competing against giants like Netflix (US$399 billion market value) and Amazon (US$2 trillion).

    He hinted at potential acquisitions to accelerate growth, citing Warner Bros Discovery's recent investment in Middle Eastern streamer OSN+.

    Australia's subscription video-on-demand stacking rate has declined for the first time since 2018, dropping to 3.2 services per household in 2024.

    Despite this, Max is forecast to generate $95 million in revenue this year from 1.2 million subscribers, growing to $306 million by 2029.

    While ruling out aggressive sports rights bids, Perrette reaffirmed Max's commitment to Australian content amid potential government quotas.

    Max debuts alongside the highly anticipated The Last of Us Season 2 and aims to stand out with fewer but higher-quality shows.

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