According to Tubi, it intends to launch 11 genre-specific channels, including "WB TV Sweet Escapes," which will include baking competitions, and three additional channels that will be divided into three categories: series, reality, and family.
The agreement represents a change in Warner Bros Discovery's streaming strategy, which previously only made its productions available through the HBO Max subscription service. The studio has now started offering movies and TV series for sale to other parties.
Warner Bros Discovery's streaming division, which includes HBO Max, lost $1.38 billion in the first nine months of 2022.
A burgeoning area of streaming that business leaders in the sector believe would enhance subscription streaming services is where the studio is looking to make money. Ad income on FAST channels might reach $4.1 billion this year, according to one study, nScreen Media.
According to senior television executive Evan Shapiro, it is the fastest expanding area of the viewership economy. Some people believe that cable will soon be essentially displaced by it. Over the past year, FAST channels have been introduced by AMC Networks Inc. AMCX.O, NBCUniversal from Comcast Corp. CMCSA.O, and the National Hockey League.
People with knowledge of the situation claim that the FAST channels are consistent with Zaslav's intention to more widely license the studio's content and profit from its substantial library of motion pictures and television shows.
Investors were informed by Zaslav that the business intends to "aggressively" combat ad-supported streaming with its own FAST streaming service in the style of Pluto TV from Paramount Global.
