Atmedia – media sales house of thematic TV channels – does present the final part of its ‘Expert Talks’ video interview series, where Michaela Suráková, Atmedia’s Managing Director, engages in discussions with TV and media market experts. The current series does host Jamie Cooke, General Manager of Warner Bros. Discovery, who oversees Central and Eastern Europe, the Middle East, and Turkey.
In the third part of the interview, the discussion turns to Max, the streaming service that replaced HBO Max in the Czech market this May. According to the Atmedia Index, a quarterly survey research study conducted by Atmedia, Max has quickly ascended to rank among the top three streaming services in the Czech Republic. This accomplishment aligns perfectly with Warner Bros. Discovery’s goal of becoming one of the three most popular paid VOD services in every market it operates. In this light, Jamie Cooke provocatively questions whether Netflix should even be considered part of this elite trio. ‘Netflix has become such a fixture in our lives that paying for it feels as routine as covering the electricity bill.’ He further points out that in every market, a local provider will always rank among the top three services, as viewers are naturally drawn to local content and will continue to seek it out. ‘This leaves just one or possibly two open spots, and our goal is to claim one of them.’
Jamie Cooke also comments on the type of content Czech viewers are most drawn to on the Max streaming service. ‘It’s typically major HBO series and ‘pay-1’ movies,’ he observes, noting that viewing preferences show minimal variation across different markets. ‘These shows consistently rank among the top for viewership worldwide.’ This year, the Paris Summer Olympics not only drew impressive viewership numbers but also received positive subscriber feedback, which Cooke partly credits to the outstanding user experience offered by the new Max service.
In the interview, Jamie Cooke discusses the possibility of introducing an ad-supported Max tier. ‘This is a trend seen across most streaming platforms,’ he explains, emphasising that the key questions revolve around the amount of advertising integrated into content and the capacity to develop innovative advertising packages. A notable initiative in Central and Eastern Europe is the rollout of the ‘ad-light Max’ product in Romania, where Warner Bros. Discovery is evaluating user feedback on commercial ads as well as advertiser interest. In tandem with this ad-supported tier, the company is also addressing the growing concern of account sharing, a practice that several streaming services have already started limiting. ‘We’re already working on some measures and will likely roll them out by the end of this year, with further implementation planned for 2025.’
The COVID-19 pandemic notably accelerated the use of streaming services. Our ongoing Atmedia Index study reveals that Max has positioned itself as one of the top three VOD services in the Czech Republic. From your perspective, how do you see Max’s performance on the Czech market?
We do not usually provide comments or disclose subscriber numbers for specific countries. However, I can share that we are quite pleased with the growth in subscribers across multiple markets, including the Czech Republic. I also believe that the Summer Olympics and our expanded content library have played a significant role in this growth. In my opinion though, one of the key drivers of subscriber growth and engagement is the app’s overall performance.
You’ve captured our performance and aspirations perfectly – our aim is to rank among the top three paid VOD services in every market we operate in. Ultimately, I believe there will be clear winners and losers in this sector. It’s hard to envision that the current multitude of VOD providers can remain sustainable over the long haul.
Based on our Atmedia Index survey research study, Czech viewers are now willing to subscribe to a maximum of two streaming services.
Exactly. And that brings me to my next question – what role does Netflix play in this scenario? Netflix has become such a fixture in our lives that paying for it feels as routine as covering the electricity bill. When we discuss the idea of two services, I’m not even sure Netflix fits into that equation anymore. It has established itself in a completely different category – something that people simply expect to have. Nonetheless, you’re spot on – we’re vying for two, maybe three positions in the streaming landscape. In my opinion, one of these services will inevitably be local, as audiences will always gravitate toward homegrown content. This leaves just one or possibly two open spots, and our goal is to claim one of them. As your research indicates, we’ve already established ourselves on the Czech market, so the focus now is on sustaining and ideally expanding that position.
If we were to compare the Max service performance in the Czech Republic with other markets, what position does it hold?
As I analyse individual markets and take into account what viewers are watching, along with their levels of engagement, it’s evident that similar types of content resonate across different regions – bearing in mind that I can only assess the markets under my purview. While I recognise that each country desires to feel distinct, the reality is often different. Honestly, I don’t observe any major disparities in viewership, audience share, or viewer engagement, nor in the kinds of content being consumed. In truth, the patterns are quite similar everywhere.
Max offers a wide variety of content, including titles from Warner Bros., Discovery, TLC, DIY shows, HGTV, and more. What do Czech viewers tend to watch the most?
It’s typically major HBO series and ‘pay-1’ movies (note: the term pay-1 refers to the initial phase when a film transitions from cinemas to Pay-TV channels or streaming services) that attract the most viewers. These shows consistently rank among the top for viewership worldwide, and this holds true across all markets globally. This type of content simply performs very well.
Now, let’s shift our focus to the Summer Olympics, where you truly took sports content consumption to new heights. Viewers had everything conveniently available in one place, enabling them to watch content anytime and anywhere. From key moments and timelines to winners – everything was at their fingertips. To illustrate, you offered over 3,800 hours of live broadcasts on Max. How pleased are you with the Summer Olympics’ performance on Max?
While these weren’t our first Olympic Games, this time several crucial factors aligned perfectly. Firstly, it was the first Olympics for which we held broadcasting rights and aired in the European time zone. Secondly, we were free from pandemic-related complications. Moreover, as you mentioned, the user experience was exceptional from my standpoint. Naturally, it takes time to learn, but we were able to apply lessons from past Olympics. The complete redesign of Max also significantly contributed to this success. Everything just fell into place at the right moment.
Are you contemplating or planning to provide advertisers with the chance to place ads during sports broadcasts?
In fact, we’ve already made initial strides in this direction. I’m referring not only to sports content but also to advertising across the entire streaming platform. Our first step in this region was the introduction of the ‘ad-light Max’ product in Romania. We’re quite satisfied with the outcomes so far, as advertisers have demonstrated considerable interest in the unique packages we provide. I believe this is a trend seen across most streaming platforms.
And what has been the feedback from subscribers?
The reactions have been mixed. The Romanian example is a specific one in that we transitioned existing subscribers to the ad-supported tier, which may have caused some discomfort among users, as they might think, ‘Wait, I have a subscription, and now you’re moving me to an ad-supported tier, even though I don’t want to see ads?’ Initially, we had some concerns, but it appears that the situation has settled down. Other markets may respond differently since we will be introducing the ad-supported tier as a brand-new product. In Romania, we launched it to test the advertising model and see what we can provide for our current subscribers. For new subscribers, the situation is different – they can intentionally opt for the ad-supported tier because it’s a more budget-friendly option. The crucial question is how much advertising we can incorporate into the content and how creatively we can structure our advertising packages.
Streaming services are evolving their policies on account sharing and progressively tightening restrictions. Are you planning to take any actions in this direction as well?
Our primary focus thus far has been on successfully launching Max, delivering a seamless experience during the Summer Olympics, and rolling out new features and products. These foundational steps are vital before we can address other concerns, such as the account sharing. Having an exceptional product is paramount. However, account sharing is certainly a significant issue for us, just as it is for others in the industry. We’re already working on some measures and will likely roll them out by the end of this year, with further implementation planned for 2025. While I can’t provide specific details at this moment, it’s definitely something we focus on.
Expert Talks
Expert Talks is a series of interviews featuring industry experts in the media and television landscape, regularly published by Atmedia sales house. Michaela Suráková, Atmedia’s Managing Director, engages in thoughtful conversations with her guests about emerging trends in TV viewership, the dynamics of paid and free VoD services, and the future of linear television, all while exploring how the Czech market compares to its European counterparts. The interviews also delve into the evolution of advertising investments and share the latest updates from various television groups.
