It turns out that MAX won the game of streaming by combining broad appeal, differentiation, and the strength of HBO and Discovery to thrive and prove the skeptics wrong.

HBO MAX became MAX.

It’s been nearly a year since the surprising rebrand that transformed HBO MAX into MAX. As a long-time fan of HBO, the announcement initially left me and many others scratching our heads and questioning the wisdom of giving up such a valuable brand for something that seemed as generic as MAX.

Before the shift to streaming, HBO had a reputation for delivering the highest caliber of content and a level of authenticity that couldn’t be found on cable TV. The brand built a level of equity and trust that was unmatched. In fact, historical data from Brand Asset Valuator® (BAV) syndicated brand study showed that HBO consistently ranked as one of the most differentiated brands in the industry, with strong perceptions of being original, daring, dynamic and worth more than other cable networks.

The shift to streaming, and the emergence of new streaming brands brought about intensified competition for HBO, particularly Netflix, who, according to BAV, by 2010, had already surpassed HBO in differentiation and esteem – two of BAV’s four pillars of equity.

In April 2022, HBO MAX’s parent company WarnerMedia combined HBO MAX and Discovery, forming Warner Bros. Discovery (WBD) and laying the groundwork for the rebrand to MAX, which was announced the following year. Without HBO in the name, MAX sent a clear signal that the platform was extending content beyond HBO, as it merged HBO MAX's content with Discovery's lineup, including fan-favorite channels like HGTV and Food Network.

But the decision to drop HBO faced backlash from marketers and fans alike, with some labeling it one of the most questionable moves in brand strategy history. Many of us, me included, mourned the loss of the HBO brand, which had brought us beloved shows like "The Sopranos," "True Blood," and "Game of Thrones." Gone was the prestigious draw of HBO, relegated to a bland, non-offensive, non-specific MAX. Even with the prominent role HBO plays on the Max home screen and the logo’s visual callback to HBO with the bullseye in MAX’s ‘a’, it still felt like the end of something special.

The initial months post-rebrand were tumultuous, with reports of a significant loss of subscribers for MAX – 1.8 million subscribers cancelled their MAX subscriptions in the first 3 months*. However, this was an adjustment WBD was expecting – at around half the monthly price, the Discovery platform, which gave non-fans of HBO a more cost-effective option, grew 14% in the same time period.

But as time passed and the dust settled, surprising indicators of success began to emerge. In February 2024, WBD reported that it was the first Hollywood conglomerate to report profits of its streaming services – and they attribute that success to MAX.

In BAV, in Q1, 2024 the MAX brand skyrocketed to a very strong leadership position, though this data is just directional based on sample sizes. Its Brand Strength – a combination of Differentiation and Relevance – is particularly high, and as a leading indicator of future growth potential, suggests the brand is poised for continued growth. MAX has established its reputation as dynamic, worth more, trendy and different.

WHAT HAPPENED?

How did the seemingly tragic loss of this beloved brand turn out so well? I think there are a few things that contributed to MAX’s success to date:

1. Appealing to a broader audience. The male-skewed HBO combined with the less scripted, female-driven Discovery brought together two coveted TV audiences. Add in Warner Brothers’ collection of children’s content and they could engage “every member of the household” according to Warner Bros. Discovery CEO David Zaslav.
2. Taking strides to overcome commoditization. Many streaming platforms, in BAV’s study, share a commoditized equity profile, where differentiation is lower than relevance, indicating that price and convenience drive decision making. With the strong brands coming together in this merger and the combined content they each bring, MAX seems to be making moves to be more differentiated.
3. Merging two complementary brands. In looking at each brand’s perceptual strengths and weaknesses, our data shows that the relationship is more mutually beneficial than it appeared. The two brands reinforce the cool, trendy, innovative perceptions they both share. and Max brings a practical, value-oriented persona that balances HBO’s prestigious, even arrogant reputation.

While the loss of the HBO brand was a tough pill to swallow, the success of MAX in terms of subscriptions and brand metrics can’t be ignored. I still miss the days when Sunday nights were HBO nights, but now I can also see that perhaps this rebrand is a demonstration of the resiliency and adaptability of brands. And that in a constantly evolving industry, sometimes taking risks and making bold moves can lead to surprising success. MAX may not have the same prestige as HBO, but it has established itself as a strong and differentiated brand in its own right. Only time will tell what the future holds for MAX, but for now it seems to be thriving in the crowded streaming landscape.

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Author: Jenna Rounds
Jenna is a Managing Director of Strategy and Insights at BAV Group, a VMLY&R brand consultancy. She has a passion for decoding human behavior and has helped build some of the world’s most renowned brands.

Connect with Jenna on LinkedIn.