New Zealand launch of Max may be a preview of Australian Foxtel partnership

New Zealand launch of Max may be a preview of Australian Foxtel partnership

Warner Bros. Discovery, which operates Max (formerly HBO Max), has been hinting at an Australian launch for months now. And while there was some talk of the company independently launching the service and possibly taking shows away from Foxtel and Foxtel-owned streaming service Binge, WBD may instead be giving Foxtel a lifeline.

Today in New Zealand WBD announced that Max will be launching as a hub within local Pay TV and streaming services Sky and Neon, not necessarily as a separate service.

From Mediaweek:

From October 30, there will be a new Max hub and dedicated HBO linear channel on the new Sky Box, Sky Pod and Sky Go. The Max hub will also feature on Sky’s Neon streaming service.
In addition, Max on Sky and Neon will offer WBD’s classic franchises such as FriendsThe Big Bang Theory and Rick and Morty, while also featuring a library from brands including the DC universe, Warner Bros, Discovery, TLC, Animal Planet, Cartoon Network and Harry Potter.
Sky’s Soho channel will be rebranded HBO as part of the deal.

In Australia the company is also expected to be partnering with Foxtel, though a formal announcement or deal wasn't made in time for Foxtel's 2025 Upfronts last week.

As Mediaweek also reports, president APAC for Warner Bros. Discovery, James Gibbons, has confirmed that the Australian launch of the service would involve Foxtel in some way, though details haven't been clear yet:

“We can confirm we’ll be launching our direct service in Australia in the first half of next year…that’s definitely happening. We have had a longstanding and really important relationship with Foxtel and I think the time has come for us to expand that into the DTC [direct to consumer] space.”
As Gibbons explained, Foxtel will be the Max partner in Australia. With New Zealand Max now on the runway for take-off next week, expect Max Australia to be earlier in the first half of 2025 than perhaps anticipated.

Foxtel's Binge has a lot of great licensed content from WBD - including blockbuster shows from HBO - but it's a pretty terrible app. There's still no offline download option for shows and the service was slow to introduce any 4K content. It still can be spotty in the quality department, with a number of shows being delivered in older formats than other sources, such as Curb Your Enthusiasm - which looks like it was sourced from an old broadcast copy rather than the enhanced versions iTunes provides.

Foxtel is also in a tough situation. Many of its former content providers, such as Disney and Paramount, have launched direct-to-consumer products that compete with and replace its core offering, while not renewing licensing deals. WWE is going to Netflix in 2025 and a number of BBC channels and shows have also been withdrawn from Binge and Foxtel.

The company launched its own streaming device, Hubbl, which leans into its legacy and attempts to bring streaming content together. Bundles are a key part of the strategy, with minor discounts on offer when Binge is bundled with Netflix and other Foxtel and non-Foxtel services.

If Warner Bros. Discovery can find a way to parnter with the company though, it could help Foxtel recover. As AFR described in April 2024:

[Foxtel]'s earnings are set to shrink by a further $150 million over the next three years to $390 million in the 2026 financial year, analysts forecast. A company once feted for a $2 billion valuation and a public listing now faces an uncertain future.

If Max is launched as part of Binge, or in some way partners with Foxtel's Hubbl service, it could give Foxtel renewed relevance in a time of, as AFR says, "streaming apocalypse".