- The fan-centric
streaming serviceDC Universe launched in September 2018 and has since released few originalTV shows. - Meanwhile, high-profile DC projects are being developed at
HBO Max , the upcoming Netflix competitor from DC's corporate parent,WarnerMedia . - It suggests DC Universe isn't a major priority for WarnerMedia, which is supported by interviews Business Insider conducted with people close to DC Universe and its content.
- Industry experts predicted DC Universe would struggle to grow a subscriber base in the current streaming landscape.
- DC Universe insiders expressed uncertainty around the service's future, with some saying it factored into their decision to leave WarnerMedia.
- If you have a tip about DC Universe, contact the author at tclark@businessinsider.com or DM him on Twitter @TravClark2.
- Visit Business Insider's homepage for more stories.
Two years ago, the debut of the streaming service DC Universe was hotly anticipated inside DC's parent division,
The studio's CEO Kevin Tsujihara internally called the platform a top priority in the months before its launch in September 2018. That same year, AT&T purchased Time Warner, forming WarnerMedia and bringing DC and Warner Bros. under its
But 2020 is a vastly different time for streaming and for DC Universe in particular.
Tsujihara is gone, having resigned in 2019 following an investigation into his relationship with an actress. And there is a new streaming service at the company that's being heralded as the future of TV for AT&T.
"Everything is about HBO Max now," said a former employee of Warner Bros. Digital Labs, a product unit that works with the company's streaming services like DCU, who left this year and requested anonymity because of fear of professional repercussions.
HBO Max, WarnerMedia's answer to Netflix, launches on May 27 for $14.99 per month and will include content across the company's divisions. It will be a far cry from the fan-centric DC Universe, which costs $7.99 per month and includes a small collection of original TV shows based on DC Comics properties and a huge library of digital comic books.
With HBO Max on the horizon and the streaming war heating up, major questions hang over DC Universe's future. Little has been announced about its original programming while major DC projects are in development at HBO Max. Some people close to the service told Business Insider they felt it wasn't a priority for WarnerMedia, and some streaming industry experts said they doubted the longevity of the service in its current form.
Any change could have big implications for those who work on the service. The former Digital Labs employee said the uncertainty factored into their decision to leave the company.
DC declined to comment for this story.
The streaming space has changed since DC Universe launched
What began as a niche, community-focused streamer now looks like a small cog in a giant machine.
"No doubt AT&T is looking to use all of its assets, DC being a critical component, to make HBO Max a player in the competitive streaming landscape," said Stephen Beck, the managing partner of consultancy group cg42. "Unlike some of the other players, they are wrestling with how to deal with preexisting subscription services [like DC Universe]. That's not a small strategic challenge."
But DC Universe's potential obstacles go beyond AT&T's acquisition of Time Warner. They also speak to how the streaming space has changed since DC Universe debuted. Companies are consolidating their content for their own services, from Disney to NBCUniversal's Peacock, and battling for consumers' dollars — making it difficult for smaller services with even the most loyal fanbases to prove vital. And in the case of DC Universe, it's sharing content with a bigger product.
"Folks only have so much disposable income that they dedicate to streaming," Beck said. "Consumers are ultimately going to become more picky around the subscriptions they have. [For WarnerMedia], they'll think 'DC enthusiasts watch other things we create, too.' They're not in the business to create a suite of standalone offerings. They're in the business of creating a mega platform."
Richard Cooper, the research director at data company Ampere Analysis, said not all smaller streaming services would necessarily struggle as more of these "mega platforms" become available. But DC Universe is not well-positioned to stand out, he said.
"A lot of its content doesn't have an exclusive feel, which niche services need to secure long-term subscribers," Cooper told Business Insider. "Lots of services have superhero content. We're not going to run out any time soon and it will be bigger budgets and more exclusivity compared to what DC Universe will be able to provide."
Cooper said DC Universe could struggle to build a subscriber base if WarnerMedia isn't invested in it, and that its digital-comics library, which is unique to the platform, isn't a "compelling enough reason" for people to subscribe long term. WarnerMedia does not disclose subscriber numbers for DC Universe.
Major new DC shows are in the works, but not for DC Universe
Major DC projects have been announced for HBO Max, which heightens a sense that DC Universe's offering isn't exclusive. And DC Universe's originals have been critically praised but few in number.
A Green Lantern series and "Strange Adventures" are being developed at HBO Max. WarnerMedia also recently announced that J.J. Abrams' Bad Robot production company, which closed a lucrative deal with WarnerMedia last year, was developing a series featuring Justice League Dark characters.
"Most of the people who I'd worked with were confused about what HBO Max means for DC Universe," said another former Digital Labs employee, who exited last year and also requested anonymity to protect career prospects. "It seems like DC Universe is emphasizing its comics and nobody really seems to know where video falls into that."
"Stargirl" is the only new series that has been announced for DC Universe this year, and when it premieres this month, its episodes will air on the CW network the day after they debut on DCU.
HBO Max also announced in October that season two of "Doom Patrol" — formerly a DC Universe exclusive — would be available on both platforms.
A crew member who had worked on more than one DC Universe series, who requested anonymity because they weren't authorized to speak publicly about the series, told Business Insider that HBO Max had been heavily involved in season two (though the show's production is currently halted due to the coronavirus).
HBO Max's content chief, Kevin Reilly, expressed a sentiment that perhaps sums up the general feeling about the two services best at a Television Critics Association panel in January: "We have to figure out those two subscriptions and we haven't worked out the mechanics of what that's going to look like."
A DC Universe monthly subscription costs less than HBO Max will, but the latter could provide more bang for the buck for fans looking for original video content. If HBO Max consolidates more DCU content and continues to develop exclusive high-profile DC projects, a DC Universe subscription could feel inessential for fans.
DC Universe isn't going away immediately, but its longevity is uncertain
When DC Universe abruptly canceled its series "Swamp Thing" last year after one season, some crew members who spoke with Business Insider at the time expressed shock. One said that there was buzz on the set that DC Universe could be folded into HBO Max, though that did not immediately come to pass.
But with "Stargirl" and "Doom Patrol" being shared between the CW and HBO Max, respectively, and the service already having few original shows, industry watchers have continued to speculate about consolidation within WarnerMedia.
But some WarnerMedia insiders said to not expect anything to change immediately.
"The feeling in the office is that DC Universe is going to be around for at least another year or two," said the former Digital Labs employee who left this year. "There's commitment and funding."
"They want to keep it around but they want to keep it small," the crew member said, adding that they thought it meant the DCU hit "Titans" would be a major focus going forward. This person said spin-offs of the series had been considered.
DC Universe could still thrive after HBO Max launches. Its shows have garnered praise from critics and they are frequently among the most in-demand original streaming shows in the US, according to weekly data from TV analytics company Parrot Analytics.
But the uncertainty has been too much for some people.
The employee who left in 2019 said they started wanting to leave when "Swamp Thing" got canceled. And the employee who left this year said they'd searched internally for jobs at HBO Max because it seemed more stable than the other streaming services, though they ultimately left the company.
If you have a tip about DC Universe, contact the author at tclark@businessinsider.com or DM him on Twitter @TravClark2.
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