Warner Bros. Discovery (WBD) yesterday reported underwhelming fourth quarter results, revealing a further $2.1 billion net loss, including $217 million from its streaming division. This is despite the success of his new original series The Last of Us, which averaged over 15 million viewers, and the recently released video of his game Hogwarts Legacy. It’s not.
The company earned $11 billion, just short of analyst estimates of revenue of nearly $11.36 billion. This is up from his $9.82 billion in Q3 2022. a billion.
Additionally, the company failed to beat its subscriber estimates, adding just 1.1 million subscribers across HBO, HBO Max, and Discovery+, while surpassing its expected 1.6 million net subscribers. The number is now 96.1 million. WBD also underperformed expectations last quarter, gaining only 2.8 million subscribers instead of the expected net gain of 3.27 million. WBD still lags behind streaming giant Netflix, which boasts 230 million subscribers worldwide.
New additions to HBO Max subscribers were largely due to the streaming service’s return to the Amazon Prime Video channel, as well as the debut of popular shows such as “The Last of Us,” and the second season of “White Lotus,” which scored 10. It is due to an Emmy and his two Golden Globes. The company recently announced that ‘The Last of Us’ will get a second season.
However, HBO Max and Discovery+ have yet to turn a profit for WBD. This shows that we are in the same boat as other media companies. Netflix, on the other hand, is profitable.
On the bright side, WBD CEO David Zaslav told investors that the merger-related restructuring is finally complete. Over the past 10 months, the company has implemented layoffs in addition to canceling many movies and TV shows in an effort to reduce its mountain of debt.
“We have taken bold and decisive action over the past 10 months, but much of our restructuring is on the back burner. We have full command and control of our business and are now one company. We have a great leadership team, we are all rowing forward in the same direction, and together we are focused on making our business better and stronger,” Zaslav said on the earnings call. “Last year was the year of restructuring. 2023 will be the year of construction.”
Speaking of the merger, Zaslav has announced that a new HBO Max/Discovery+ streaming service will launch in the next few months. The company will reveal more details at his April 12th special press event.
He also confirmed that Discovery+ will remain a standalone service for customers who want to keep paying the low $4.99/month price. Meanwhile, HBO Max will continue to be paired with Discovery+ content. Last month, WBD raised the price of his HBO Max ad-free plan for the first time, from $14.99 per month to $15.99 for him.
Now that the WBD has been rebuilt, we can focus on extending the original content catalog. For example, Zaslav revealed exciting news to Lord of the Rings fans by announcing that Warner Bros. Studios has signed a deal to produce multiple films based on the franchise.
The company will also “make the most of” other IP such as “Superman,” “Batman,” and “Harry Potter,” Zaslav said.
DC Studios co-chairmen James Gunn and Peter Safran recently shared ten upcoming film and TV projects, including Superman: Legacy, The Batman – Part II, and Supergirl: Woman of Tomorrow. Did.
“With the IP we own, we believe we have an overwhelming advantage in the market,” added Zaslav. “We have the most powerful force in the industry, with the most complete portfolio of assets across sports, news, non-fiction and entertainment, world-renowned franchises, personalities and storytelling IP in virtually every corner of the world. regions and in all languages.”
The title that will appear this year is “Shazam! Wrath of the Gods” arrives in theaters March 17th. “The Flash” will debut on June 16th this summer. Other films include the ‘Barbie’ movies starring Margot Robbie and Ryan Gosling, ‘Dune: Part 2’ and Timothée Chalamet in ‘Wonka’.
