Two major streaming services, Paramount+ and HBO Max, are now under the same Skydance umbrella. But before the company combines the two service into one, subscribers are going to court to challenge the company’s streaming strategy.
Deadline reports that a group of subscribers have filed a complaint to keep Paramount+ and HBO Max separate.
“Plaintiffs request an order requiring Defendants Paramount Skydance Corporation and Skydance Media, LLC to hold and operate separately, pending final adjudication or further order, the acquired Warner Bros. Discovery businesses and assets necessary to preserve viable independent HBO Max and Paramount+ services, together with identifiable associated film and national-news operations, so the Court may order effective divestiture if Plaintiffs prevail,” the October 16 filing says.
Paramount completed the acquisition of Warner Bros. Discovery on October 6, following a legal battle with state attorneys general and other groups in opposition of the merger. When the deal was done, the combined company, named Skydance, became the owner of the two streaming services, two major film studios, a broadcast TV portfolio, cable networks, and more assets.
The same day, we reported that with the acquisition completed, Skydance was making plans to combine Paramount+ and HBO Max. That came from one line of the company’s press release, which said: “At the same time, consumers can expect greater innovation from a company built with technology at its core, including significant improvements to its direct-to-consumer streaming products, which will unify into a single service over time.”
Deadline reports that the group of subscribers filed a case against Paramount in April, but it was dismissed by Judge Araceli Martínez-Olguín. The case noted the Disney/Fox deal and the Amazon/MGM deal as examples of how the entertainment industry is consolidating in a way that is harming consumers.
“These acquisitions show an industry moving by successive combinations toward fewer independent rivals, exactly the consolidation backdrop that heightens the competitive threat posed by the next merger, even if the combined firm remains smaller than the largest platforms,” the original lawsuit stated.
The plaintiffs, Pamela Faust, Len Marazzo, Lisa McCarthy, Deborah Rubinsohn and Gary Talewsky, were allowed to refile and did so on Friday. The group is asking for a December hearing.
