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The Guardian - UK
The Guardian - UK
Business
Mark Sweney

Sky strikes Warner Bros Discovery deal, averting exodus of shows

Jeremy Strong, Sarah Snook and Kieran Culkin in Succession
Warner Bros Discovery owns HBO, whose hit shows such as Succession air in the UK on Sky. Photograph: AP

Sky has struck a crucial content deal with Warner Bros Discovery, the owner of the film studio behind Barbie and HBO shows including Succession, averting a potential crippling exodus of shows as the Hollywood giant prepares the launch of its Max streaming service.

Under the deal between Sky’s parent company Comcast and WBD, the ad-supported versions of WBD’s Max and Discovery+ services will be bundled for Sky customers from April 2026.

WBD, which also makes hit TV shows including The White Lotus, The Penguin and Dune: Prophecy as well as the Harry Potter film franchise, already operates Discovery+ in the UK.

However, it has not been able to launch its full streaming service, Max, because of an existing deal with Sky.

Max is scheduled to launch in the UK and Ireland in 2026, after the expiry of the current deal with Sky at the end of next year.

Sky, which for decades had held a stranglehold on top US content through exclusive deals with Hollywood firms, has seen its grip weakened as companies such as Disney have looked to keep hold of crown jewel content for their own streaming services.

Dana Strong, the Sky group chief executive, said: “This new partnership provides an expanded portfolio of content for our customers who enjoy Warner Bros Discovery’s popular storytelling.

“Sky customers will be able to enjoy the Max app, WBD movies and the TV shows currently on Sky channels, and a seamless integration of the Max service into our Now streaming experience.”

The financial terms of the deal, which also covers Sky’s US customers, were not disclosed.

A mutually beneficial deal had been expected as WBD, which also owns Eurosport and Discovery and controls the TV joint-venture TNT Sports with BT, could ill-afford not to offer the Max service to more than 10 million Sky customers by taking exclusive control of all of its content.

Sky has deals in place to offer nearly all the big US streaming services including Netflix, Disney+, Apple TV+ and Paramount+ to its customers.

In 2022, WBD reversed its decision not to drastically reduce the licensing of its content to third parties in order to boost its Max service, in order to increase its customer base and maximise revenues from its content.

However, while Strong has said “in every scenario” of a deal with WBD, its content would remain available to its customers, relations have been at times strained.

In September, Sky filed a lawsuit in the US against WBD for allegedly violating an agreement that gave it the right to co-produce shows including a highly anticipated and lucrative Harry Potter TV series.

After the announcement of the new deal with WBD, Sky dropped the court case.

“Our new agreement will continue Warner Bros Discovery’s longstanding collaboration with Sky UK,” said Andrew Georgiou, the president and managing director for WBD UK and Ireland.

“Arriving in early 2026, the market-wide launch of Max in the UK and Ireland is a significant step in our global rollout and will be the place where audiences find incredible new shows including the future Harry Potter series from HBO.”

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