Exclusive: After corporate maneuvers, a global pandemic and labor unrest, the wheels of streaming commerce are finally starting to turn for Max.
The Warner Bros. Discovery streaming service introduced an ad tier in 2021, when it was known as HBO Max and owned by AT&T’s WarnerMedia, only to re-approach the ad business in earnest in early 2023. About a year into the effort and the rebrand to Max, there are clear signs of traction, with the service due to be center stage Wednesday at the company’s upfront presentation to ad buyers in New York.
“We’re total babies with this part of the business,” Jb Perrette, CEO and President of Global Streaming and Games, enthused to Deadline in an interview. “But we’re finding that we’re very well-positioned in the marketplace when you look at streaming prices going up and consumer sensitivity to price.” Internationally, he noted, Max’s...
The Warner Bros. Discovery streaming service introduced an ad tier in 2021, when it was known as HBO Max and owned by AT&T’s WarnerMedia, only to re-approach the ad business in earnest in early 2023. About a year into the effort and the rebrand to Max, there are clear signs of traction, with the service due to be center stage Wednesday at the company’s upfront presentation to ad buyers in New York.
“We’re total babies with this part of the business,” Jb Perrette, CEO and President of Global Streaming and Games, enthused to Deadline in an interview. “But we’re finding that we’re very well-positioned in the marketplace when you look at streaming prices going up and consumer sensitivity to price.” Internationally, he noted, Max’s...
- 5/15/2024
- by Dade Hayes
- Deadline Film + TV
Under David Zaslav, Wbd has seen numerous painful rounds of cuts and price hikes, which don’t seem to be stopping any time soon.
Since merging Discovery and WarnerMedia in 2022, CEO David Zaslav has been almost singularly focused on slashing costs, increasing revenue, and paying down the more than $40 billion in debt that the combined company had just two years ago. In a new report from Blooberg's Lucas Shaw, sources indicate that Zaslav is looking to implement even more cost-cutting measures and increase streaming prices even more than he already has.
Key Details: CEO David Zaslav is looking to meet financial goals by combining cost-cutting and price-raising measures. Wbd has been telegraphing a price increase for over six months; Max is already one of the most expensive SVODs on the market. As Wbd fights to keep NBA rights, it will need to generate enough cash to pay roughly $2.5 billion per year.
Since merging Discovery and WarnerMedia in 2022, CEO David Zaslav has been almost singularly focused on slashing costs, increasing revenue, and paying down the more than $40 billion in debt that the combined company had just two years ago. In a new report from Blooberg's Lucas Shaw, sources indicate that Zaslav is looking to implement even more cost-cutting measures and increase streaming prices even more than he already has.
Key Details: CEO David Zaslav is looking to meet financial goals by combining cost-cutting and price-raising measures. Wbd has been telegraphing a price increase for over six months; Max is already one of the most expensive SVODs on the market. As Wbd fights to keep NBA rights, it will need to generate enough cash to pay roughly $2.5 billion per year.
- 5/8/2024
- by Matt Tamanini
- The Streamable
David Zaslav saw his total compensation package last year jump by more than $10 million to $49.7 million in 2023 — with Warner Bros. Discovery awarding him a base salary of $3 million, plus $23 million in stock awards, and non-equity incentive plan compensation (a cash bonus) of $22 million.
It’s the second rather princely CEO package in as many days in an industry known for them as Netflix yesterday unveiled a similarly sized package co-ceo Ted Sarandos.
Zaslav, however, has for years been the poster child of high CEO pay, with a hard to swallow 2021 package of nearly $247 million, swelled by $203 million worth of option awards. That number — and the others — were plastered on posters last spring as the writers guild’ labor talks got heated. CEO pay remained a rallying cry. It might again with a new set of labor talks underway and an overall contraction in the industry that’s causing pain above and below the line.
It’s the second rather princely CEO package in as many days in an industry known for them as Netflix yesterday unveiled a similarly sized package co-ceo Ted Sarandos.
Zaslav, however, has for years been the poster child of high CEO pay, with a hard to swallow 2021 package of nearly $247 million, swelled by $203 million worth of option awards. That number — and the others — were plastered on posters last spring as the writers guild’ labor talks got heated. CEO pay remained a rallying cry. It might again with a new set of labor talks underway and an overall contraction in the industry that’s causing pain above and below the line.
- 4/19/2024
- by Jill Goldsmith
- Deadline Film + TV
This ought to go over just fine on Twitter/X. Warner Bros. Discovery President and CEO David Zaslav’s executive compensation for 2023 was $49.7 million, according to a new filing with the Securities & Exchange Commission.
Here’s how the near-$50-million haul breaks down: Zaslav’s salary actually dipped a hair from 2022 to $3 million, his stock awards practically doubled to $23.1 million, and his non-equity incentive plan compensation stayed pretty steady at $22 million. Along with $1.6 million in the “other” category — pocket change, really — Zaslav’s 2023 compensation package was about 27 percent larger than his 2022 pay of $39.3 million.
Zaslav’s Discovery, Inc. merged with AT&T’s WarnerMedia on April 8, 2022. With a crazy options package revealed ahead of the closure, Zaslav’s estimated executive compensation for 2021 was $246.6 million — nearly $203 million of that from options. But here’s the rub: Options awards are not guaranteed, rather they are tied to the company’s stock price. If...
Here’s how the near-$50-million haul breaks down: Zaslav’s salary actually dipped a hair from 2022 to $3 million, his stock awards practically doubled to $23.1 million, and his non-equity incentive plan compensation stayed pretty steady at $22 million. Along with $1.6 million in the “other” category — pocket change, really — Zaslav’s 2023 compensation package was about 27 percent larger than his 2022 pay of $39.3 million.
Zaslav’s Discovery, Inc. merged with AT&T’s WarnerMedia on April 8, 2022. With a crazy options package revealed ahead of the closure, Zaslav’s estimated executive compensation for 2021 was $246.6 million — nearly $203 million of that from options. But here’s the rub: Options awards are not guaranteed, rather they are tied to the company’s stock price. If...
- 4/19/2024
- by Tony Maglio
- Indiewire
Warner Bros. Discovery has been in cost-cutting mode — except when it comes to paying top execs.
David Zaslav, president and CEO of Warner Bros. Discovery, had a 2023 pay package worth $49.7 million, up 26.5% from the year prior, according to the company’s 2024 proxy statement filed Friday. Zaslav’s compensation totaled $39.3 million in 2022, after he received an astonishing $246.6 million (which included $203 million in stock-option grants) in 2021.
For 2023, Zaslav had a base salary of $3 million, stock awards valued at $23.1 million, a cash bonus of $22 million and $1.6 million in other compensation.
Other Wbd senior execs also saw double-digit pay hikes in 2023. CFO Gunnar Wiedenfels earned $17.1 million (up 26%); chief revenue and strategy officer Bruce Campbell, $18.3 million (up 33%); Jb Perrette, president/CEO of global streaming and games, $20.1 million (up 43%); and president of international Gerhard Zeiler, $13.3 million (up 30%).
Cash bonuses and stock awards for Zaslav and Wbd’s other named executive officers are tied to free cash flow targets.
David Zaslav, president and CEO of Warner Bros. Discovery, had a 2023 pay package worth $49.7 million, up 26.5% from the year prior, according to the company’s 2024 proxy statement filed Friday. Zaslav’s compensation totaled $39.3 million in 2022, after he received an astonishing $246.6 million (which included $203 million in stock-option grants) in 2021.
For 2023, Zaslav had a base salary of $3 million, stock awards valued at $23.1 million, a cash bonus of $22 million and $1.6 million in other compensation.
Other Wbd senior execs also saw double-digit pay hikes in 2023. CFO Gunnar Wiedenfels earned $17.1 million (up 26%); chief revenue and strategy officer Bruce Campbell, $18.3 million (up 33%); Jb Perrette, president/CEO of global streaming and games, $20.1 million (up 43%); and president of international Gerhard Zeiler, $13.3 million (up 30%).
Cash bonuses and stock awards for Zaslav and Wbd’s other named executive officers are tied to free cash flow targets.
- 4/19/2024
- by Todd Spangler
- Variety Film + TV
Rocksteady’s new Suicide Squad game seemed destined for critical and financial disappointment even before it saw the light of day earlier this month. The months leading up to its release were plagued with negative publicity, especially due to its live-service nature, which not many players are too fond of.
Kill the Justice League initially felt like quite a promising concept, but a horrible early access launch, its disrespectful approach towards beloved DC characters, and many other aspects didn’t sit right with the majority of the fanbase.
Not even a month after its launch, Warner Bros. has admitted that Suicide Squad failed to meet the company’s expectations, like it did for fans.
Warner Bros. Admits That Suicide Squad: Kill the Justice League Was a Disappointment
Suicide Squad: Kill the Justice League was not just disappointing for fans; it failed to meet WB’s expectations as well.
Warner Bros. Discovery...
Kill the Justice League initially felt like quite a promising concept, but a horrible early access launch, its disrespectful approach towards beloved DC characters, and many other aspects didn’t sit right with the majority of the fanbase.
Not even a month after its launch, Warner Bros. has admitted that Suicide Squad failed to meet the company’s expectations, like it did for fans.
Warner Bros. Admits That Suicide Squad: Kill the Justice League Was a Disappointment
Suicide Squad: Kill the Justice League was not just disappointing for fans; it failed to meet WB’s expectations as well.
Warner Bros. Discovery...
- 2/25/2024
- by Osama Farooq
- FandomWire
David Zaslav came to market Friday morning with a fourth-quarter earnings report that delivered enviable free cash flow and put another sizable dent in Warner Bros. Discovery’s heavy debt load. But it wasn’t enough to stop a 10% slide for the company’s already battered share price that took place minutes after the results were unveiled.
Investors were clearly surprised by the depth of the year-over-year declines in revenue and earnings at WB Discovery’s studio and linear networks divisions. These are the company’s profitable pillars, the earnings engines keeping the light bills paid while streamer Max and HBO chomp through investment capital as both entities are reinvented for a new era of television.
Anyone who has paid attention to Hollywood in the past year should have anticipated a rough Q4 for the Warner Bros studio. The October-December frame encompassed the tail end of two brutal strikes by...
Investors were clearly surprised by the depth of the year-over-year declines in revenue and earnings at WB Discovery’s studio and linear networks divisions. These are the company’s profitable pillars, the earnings engines keeping the light bills paid while streamer Max and HBO chomp through investment capital as both entities are reinvented for a new era of television.
Anyone who has paid attention to Hollywood in the past year should have anticipated a rough Q4 for the Warner Bros studio. The October-December frame encompassed the tail end of two brutal strikes by...
- 2/24/2024
- by Cynthia Littleton
- Variety Film + TV
Warner Bros. Discovery share price, already in the dumps, has tumbled another 11% this morning after the company’s latest quarterly numbers showed weak linear advertising and a struggling studio. But the clincher for investors may be what it didn’t show — a full-year 2024 forecast.
The stock is scraping $8.50 late morning as the lack of a number “challenges confidence,” said Michael Morris of Guggenheim Partners in a note.
“The results themselves were not great,” he noted on CNBC, but not all that surprising. “Where I think that people are surprised right now is the lack of full-year 2024 guidance. This is a company that has historically provided formal guidance for its coming year.” On a call with analysts after the numbers, CEO David Zaslav and CFO Gunnar Wiedenfels “talked about a number of qualitative factors, but without that quantitative commitment, it’s hard for investors to make the commitment” either.
With the...
The stock is scraping $8.50 late morning as the lack of a number “challenges confidence,” said Michael Morris of Guggenheim Partners in a note.
“The results themselves were not great,” he noted on CNBC, but not all that surprising. “Where I think that people are surprised right now is the lack of full-year 2024 guidance. This is a company that has historically provided formal guidance for its coming year.” On a call with analysts after the numbers, CEO David Zaslav and CFO Gunnar Wiedenfels “talked about a number of qualitative factors, but without that quantitative commitment, it’s hard for investors to make the commitment” either.
With the...
- 2/23/2024
- by Jill Goldsmith
- Deadline Film + TV
James Gunn has been sharing his excitement for the upcoming start of Superman: Legacy this week. Previously, he shared a photo of him showing the stars of Peacemaker, Jennifer Holland and Freddie Stroma, the set of the film. He also shared a cast photo at the table read of the film. The caption on the photo read, “After the table read with the #Superman cast. Eve, Mr. Terrific, Superman/Clark, Otis, Lex, producer Peter Safran, Jimmy, Metamorpho, Lois, Hawkgirl, me, Guy, The Engineer all together for the first time! What a wonderful day.” The photo also showcases Nicholas Hoult’s new bald look for playing Lex Luthor in the film.
The Dcu inaugural film is due to start shooting next week, and one person who is ecstatic about it is Warner Bros. Discovery CEO David Zaslav. According to Variety, Zaslav gave a fourth-quarter earnings call this morning, which touched on...
The Dcu inaugural film is due to start shooting next week, and one person who is ecstatic about it is Warner Bros. Discovery CEO David Zaslav. According to Variety, Zaslav gave a fourth-quarter earnings call this morning, which touched on...
- 2/23/2024
- by EJ Tangonan
- JoBlo.com
During a recent earnings call, Warner Bros. Discover CFO Gunnar Wiedenfels made one of the first official statements regarding Suicide Squad: Kill the Justice League’s previously mysterious sales. While his statements may not shock those who are aware of the game’s status, they are surprising in terms of what they may say about the future of live service games.
Speaking briefly on the subject, Wiedenfels mentioned that Kill the Justice League’s sales fell “short of our expectations.” Though Wiedenfels did not reveal the exact sales/revenue figures at that time, that’s about as bluntly as you’ll hear an executive from a major company refer to a product’s disappointing performance during such an event.
While the full Kill the Justice League sales figures haven’t been revealed yet, all available information points towards a historic failure. On Steam, the game’s concurrent player count figure peaked at just over 13,000 users,...
Speaking briefly on the subject, Wiedenfels mentioned that Kill the Justice League’s sales fell “short of our expectations.” Though Wiedenfels did not reveal the exact sales/revenue figures at that time, that’s about as bluntly as you’ll hear an executive from a major company refer to a product’s disappointing performance during such an event.
While the full Kill the Justice League sales figures haven’t been revealed yet, all available information points towards a historic failure. On Steam, the game’s concurrent player count figure peaked at just over 13,000 users,...
- 2/23/2024
- by Matthew Byrd
- Den of Geek
Weeks after its release, live-service videogame Suicide Squad: Kill The Justice League has “fallen short” of Warner Bros’ expectations, one executive has said.
After years in development and multiple delays, Rocksteady’s much-anticipated Suicide Squad: Kill The Justice League finally emerged on the 2nd February. A multiplayer action game with a cracking pedigree behind it – Rocksteady being the studio behind the Batman: Arkham series – it cast players as DC Comics’ famous anti-heroes, with Captain Boomerang, Deadshot, King Shark and Harley Quinn available to choose from, while dozens of other familiar faces pop up as NPCs.
Reviews have been middling, however, and the game’s slow sales have been confirmed by Warner Bros Discovery’s chief financial officer, Gunnar Wiedenfels. Talking on an earnings call with shareholders (via IGN), Wiedenfalls admitted that Suicide Squad had “fallen short of our expectations,” and added that it was going to be a “tough year...
After years in development and multiple delays, Rocksteady’s much-anticipated Suicide Squad: Kill The Justice League finally emerged on the 2nd February. A multiplayer action game with a cracking pedigree behind it – Rocksteady being the studio behind the Batman: Arkham series – it cast players as DC Comics’ famous anti-heroes, with Captain Boomerang, Deadshot, King Shark and Harley Quinn available to choose from, while dozens of other familiar faces pop up as NPCs.
Reviews have been middling, however, and the game’s slow sales have been confirmed by Warner Bros Discovery’s chief financial officer, Gunnar Wiedenfels. Talking on an earnings call with shareholders (via IGN), Wiedenfalls admitted that Suicide Squad had “fallen short of our expectations,” and added that it was going to be a “tough year...
- 2/23/2024
- by Ryan Lambie
- Film Stories
During Friday’s Q4 earnings call, David Zaslav, Warner Bros. Discovery’s CEO, said that James Gunn’s “Superman: Legacy” will start filming next week.
Gunn posted the first picture of the full cast on Instagram yesterday, writing, “After the table read with the #Superman cast. Eve, Mr. Terrific, Superman/Clark, Otis, Lex, producer Peter Safran, Jimmy, Metamorpho, Lois, Hawkgirl, me, Guy, The Engineer all together for the first time! What a wonderful day.”
Zaslav sounded optimistic when delivering the “Superman” news, saying, “Bottom line, the studio has really been underperforming — including at the end of the year where we had some real struggle — but we’re very optimistic about this year, and it has given us the chance to have a lot of upside in the next two years.”
Gunnar Wiedenfels, Warner Bros. Discovery’s CFO, was also frank on the call about last year’s soft superhero offerings.
Gunn posted the first picture of the full cast on Instagram yesterday, writing, “After the table read with the #Superman cast. Eve, Mr. Terrific, Superman/Clark, Otis, Lex, producer Peter Safran, Jimmy, Metamorpho, Lois, Hawkgirl, me, Guy, The Engineer all together for the first time! What a wonderful day.”
Zaslav sounded optimistic when delivering the “Superman” news, saying, “Bottom line, the studio has really been underperforming — including at the end of the year where we had some real struggle — but we’re very optimistic about this year, and it has given us the chance to have a lot of upside in the next two years.”
Gunnar Wiedenfels, Warner Bros. Discovery’s CFO, was also frank on the call about last year’s soft superhero offerings.
- 2/23/2024
- by William Earl
- Variety Film + TV
Phil Lord has a question for David Zaslav:
Is it anticompetitive if one of the biggest movie studios in the world shuns the marketplace in order to use a tax loophole to write off an entire movie so they can more easily merge with one of the other biggest movie studios in the world? Cause it Seems anticompetitive.
— Phil Lord (@philiplord) February 10, 2024
Lord’s tweet, of course, is about “Coyote vs. Acme.” Warner Bros. Discovery shelved the completed film, a la “Batgirl” — although, unlike that DC Comics production, the Looney Tunes movie was supposedly shopped and according to some reports, received offers. Wbd denies the reports of official offers being made.
Into the Accounting-Verse, we go.
A person with knowledge of the situation told IndieWire that Warner Bros. screened the film for a dozen distributors. Of these, 10 passed; the other two expressed interest in acquiring it, but for less...
Is it anticompetitive if one of the biggest movie studios in the world shuns the marketplace in order to use a tax loophole to write off an entire movie so they can more easily merge with one of the other biggest movie studios in the world? Cause it Seems anticompetitive.
— Phil Lord (@philiplord) February 10, 2024
Lord’s tweet, of course, is about “Coyote vs. Acme.” Warner Bros. Discovery shelved the completed film, a la “Batgirl” — although, unlike that DC Comics production, the Looney Tunes movie was supposedly shopped and according to some reports, received offers. Wbd denies the reports of official offers being made.
Into the Accounting-Verse, we go.
A person with knowledge of the situation told IndieWire that Warner Bros. screened the film for a dozen distributors. Of these, 10 passed; the other two expressed interest in acquiring it, but for less...
- 2/13/2024
- by Tony Maglio
- Indiewire
Warners Bros has screened their axed Coyote vs. Acme to around 12 buyers we hear with a rigid buy price of $70M+; which is how much the animated live-action hybrid movie cost.
Netflix and Paramount put forth bids, which we told you about, but they were lower than the $70M asking price (between $30M-$50M), therefore in Warner’s eyes, rivals didn’t want the feature for what it cost.
What Deadline has received clarity on is that Warner Bros took a $70M writedown on Q3 earnings, not the upcoming Q4. Nonetheless, the movie, which the Burbank, CA lot decided back in early November not to release — remains in purgatory. That said, we hear the door isn’t officially closed on Coyote vs. Acme‘s prospects yet — it’s just that the Coyote could wind up in the cave with Batgirl.
“No one is doing anything at Warners to push this film for a sale,...
Netflix and Paramount put forth bids, which we told you about, but they were lower than the $70M asking price (between $30M-$50M), therefore in Warner’s eyes, rivals didn’t want the feature for what it cost.
What Deadline has received clarity on is that Warner Bros took a $70M writedown on Q3 earnings, not the upcoming Q4. Nonetheless, the movie, which the Burbank, CA lot decided back in early November not to release — remains in purgatory. That said, we hear the door isn’t officially closed on Coyote vs. Acme‘s prospects yet — it’s just that the Coyote could wind up in the cave with Batgirl.
“No one is doing anything at Warners to push this film for a sale,...
- 2/10/2024
- by Anthony D'Alessandro
- Deadline Film + TV
Warner Bros. Discovery was named victorious Monday in a September 2022 lawsuit alleging David Zaslav and other executives inflated HBO Max streaming subscriptions ahead of Warner Bros. merger with Discovery, duping “hundreds of thousands” of shareholders.
Despite alleged “half-truths,” U.S. District Judge Valierie Caproni ruled that the proposed class action lawsuit, led by Ohio Attorney General Dave Yost, would not move forward, and that Wbd was “not required to disclose a fact simply because it may be relevant or of interest to a reasonable investor,” according to court documents.
Yost said that Wbd also hid WarnerMedia’s strategies for licensing content and distributing films, as well as the looming demise of the CNN+, the short-lived CNN spinoff.
Judge Caproni also ruled that Yost did not explain how the the plan to pull the plug on CNN+ was related to a “misleading” content strategy for the media giant.
Yost filed the lawsuit in Sept.
Despite alleged “half-truths,” U.S. District Judge Valierie Caproni ruled that the proposed class action lawsuit, led by Ohio Attorney General Dave Yost, would not move forward, and that Wbd was “not required to disclose a fact simply because it may be relevant or of interest to a reasonable investor,” according to court documents.
Yost said that Wbd also hid WarnerMedia’s strategies for licensing content and distributing films, as well as the looming demise of the CNN+, the short-lived CNN spinoff.
Judge Caproni also ruled that Yost did not explain how the the plan to pull the plug on CNN+ was related to a “misleading” content strategy for the media giant.
Yost filed the lawsuit in Sept.
- 2/6/2024
- by Benjamin Lindsay, sharon knolle
- The Wrap
Warner Bros. Discovery and its top brass will not have to face a lawsuit from investors accusing them of hiding adverse financial information about the company’s prospects leading up to the 2022 merger of Discovery and AT&T’s WarnerMedia.
U.S. District Judge Valierie Caproni on Monday found that Wbd didn’t overstate subscriber figures and was not required to disclose information about broader changes to its business strategy as it related to third-party licensing and the likely shuttering of CNN+. Other allegations over the profitability of WarnerMedia’s investment in content to fuel its burgeoning streaming platform and the company’s shift away from licensing movies for theatrical distribution in favor of a direct-to-streaming model were similarly dismissed. Wbd declined comment for this story.
The proposed class action, led by Ohio Attorney General Dave Yost, alleged Discovery, as well as Wbd chief executive David Zaslav and CFO Gunnar Wiedenfels,...
U.S. District Judge Valierie Caproni on Monday found that Wbd didn’t overstate subscriber figures and was not required to disclose information about broader changes to its business strategy as it related to third-party licensing and the likely shuttering of CNN+. Other allegations over the profitability of WarnerMedia’s investment in content to fuel its burgeoning streaming platform and the company’s shift away from licensing movies for theatrical distribution in favor of a direct-to-streaming model were similarly dismissed. Wbd declined comment for this story.
The proposed class action, led by Ohio Attorney General Dave Yost, alleged Discovery, as well as Wbd chief executive David Zaslav and CFO Gunnar Wiedenfels,...
- 2/6/2024
- by Winston Cho
- The Hollywood Reporter - Movie News
In 2022, the stocks of streaming giant Netflix and most Hollywood giants fell to Earth. In 2023, major media and tech players had another grim year with investors as faith in streaming took another hit, even if their share prices ended the year on a roll, helped by renewed M&a talk.
Netflix soared back to subscriber growth with its ad-supported streaming offering and its stock was lifted back to health in 2023. And music streamer Spotify, Roku and Lionsgate were among the other big winners of the year, handily outperforming the 24.3 percent gain in the broad-based S&P 500 stock index to escape the carnage in much of the media sector.
Most old guard Hollywood players didn’t match that performance as those with legacy linear TV networks especially faced a roller coaster ride amid digital competition. But investors cheered as biggies like Disney, with CEO Bob Iger back at the helm, rose from...
Netflix soared back to subscriber growth with its ad-supported streaming offering and its stock was lifted back to health in 2023. And music streamer Spotify, Roku and Lionsgate were among the other big winners of the year, handily outperforming the 24.3 percent gain in the broad-based S&P 500 stock index to escape the carnage in much of the media sector.
Most old guard Hollywood players didn’t match that performance as those with legacy linear TV networks especially faced a roller coaster ride amid digital competition. But investors cheered as biggies like Disney, with CEO Bob Iger back at the helm, rose from...
- 12/29/2023
- by Georg Szalai and Etan Vlessing
- The Hollywood Reporter - Movie News
“So You’re Sayin’ There’s a Chance.” Wells Fargo analyst Steven Cahall channeled a famous line from Dumb and Dumber in the title of a Nov. 3 report, in which he analyzed how Hollywood giants and their investors started off the final earnings season of 2023 with the hope that it would provide proof that the sector was finally making progress toward streaming profitability.
“This earnings season feels like a potential shift for direct-to-consumer (Dtc),” Cahall wrote even before sector powerhouses Warner Bros. Discovery and Disney had shared their latest quarterly results. “Dtc trends this earnings season indicate a potential earnings inflection. It’s potentially a fundamental moment that makes media more investable longer-term.” But he argued it was “too early to call it a turning point, too important to call it nothing.”
With the latest quarterly results all in and the year coming to an end, entertainment companies’ streaming losses...
“This earnings season feels like a potential shift for direct-to-consumer (Dtc),” Cahall wrote even before sector powerhouses Warner Bros. Discovery and Disney had shared their latest quarterly results. “Dtc trends this earnings season indicate a potential earnings inflection. It’s potentially a fundamental moment that makes media more investable longer-term.” But he argued it was “too early to call it a turning point, too important to call it nothing.”
With the latest quarterly results all in and the year coming to an end, entertainment companies’ streaming losses...
- 12/29/2023
- by Georg Szalai
- The Hollywood Reporter - Movie News
On April 8, 2024, a total solar eclipse will cross North America. But Hollywood executives may not be looking to the heavens — they’ll be watching David Zaslav.
April 8 is the date the Reverse Morris Trust lock-up period from Discovery’s WarnerMedia deal with AT&T expires. Put simply, it’s when Warner Bros. Discovery can again be involved in M&a activity without getting brutalized on taxes. (The Reverse Morris Trust is a method of tax avoidance that allows a company to sell off unwanted assets without incurring tax obligations on the gains from those sales.)
The otherwise random Monday, 139 days from today (2024 is a leap year!) and the day we’ll have a full sense of how Disney’s “The Omen” prequel film “The First Omen” performed over opening weekend, will be an unofficial holiday for Zaslav and his CFO Gunnar Wiedenfels. How’s that Madonna song go? “Holiday/Consolidate.”
Reflecting on...
April 8 is the date the Reverse Morris Trust lock-up period from Discovery’s WarnerMedia deal with AT&T expires. Put simply, it’s when Warner Bros. Discovery can again be involved in M&a activity without getting brutalized on taxes. (The Reverse Morris Trust is a method of tax avoidance that allows a company to sell off unwanted assets without incurring tax obligations on the gains from those sales.)
The otherwise random Monday, 139 days from today (2024 is a leap year!) and the day we’ll have a full sense of how Disney’s “The Omen” prequel film “The First Omen” performed over opening weekend, will be an unofficial holiday for Zaslav and his CFO Gunnar Wiedenfels. How’s that Madonna song go? “Holiday/Consolidate.”
Reflecting on...
- 11/21/2023
- by Tony Maglio
- Indiewire
Though we know David Zaslav won’t get one, perhaps a slight apology is due to Warner Bros. Discovery’s chief executive. Zaslav, his CFO Gunnar Wiedenfels, and the company’s streaming boss Jb Perrette caught endless grief for unceremoniously cutting a bunch of titles from HBO Max, now known as Max. We’re not saying they didn’t deserve the backlash — especially for “Batgirl” and “Coyote vs. Acme” — but perhaps some of the vitriol should have been reserved for Paramount and Bob Bakish.
According to a recent Reelgood audit of the catalogs for eight leading U.S. streaming services, Paramount+ had 830 movie titles available on October 15, 2023. However, on October 17, 2022, Paramount+ had 2,302 movie titles available.
The Paramount+ film library lost 1,472 titles over 363 days, a 64 percent drop (and about four per day). Simultaneously, the Paramount+ TV catalog increased 3 percent. A spokesperson for Paramount did not immediately respond to IndieWire’s request...
According to a recent Reelgood audit of the catalogs for eight leading U.S. streaming services, Paramount+ had 830 movie titles available on October 15, 2023. However, on October 17, 2022, Paramount+ had 2,302 movie titles available.
The Paramount+ film library lost 1,472 titles over 363 days, a 64 percent drop (and about four per day). Simultaneously, the Paramount+ TV catalog increased 3 percent. A spokesperson for Paramount did not immediately respond to IndieWire’s request...
- 11/20/2023
- by Tony Maglio
- Indiewire
“I’ve never regretted overpaying for great talent or a great asset,” mogul tells Nyt.
Six weeks after the end of the Hollywood writers strike Warner Bros Discovery CEO David Zaslav has said the union was right and expressed no regrets “overpaying” for the new three-year contract.
“They are right about almost everything,” Zaslav told The New York Times in ’How David Zaslav Blew Up Hollywood’ a far-reaching interview published on Wednesday. “So what if we overpay? I’ve never regretted overpaying for great talent or a great asset.”
The Writers Guild of America (WGA) contract is estimated to cost...
Six weeks after the end of the Hollywood writers strike Warner Bros Discovery CEO David Zaslav has said the union was right and expressed no regrets “overpaying” for the new three-year contract.
“They are right about almost everything,” Zaslav told The New York Times in ’How David Zaslav Blew Up Hollywood’ a far-reaching interview published on Wednesday. “So what if we overpay? I’ve never regretted overpaying for great talent or a great asset.”
The Writers Guild of America (WGA) contract is estimated to cost...
- 11/15/2023
- by Jeremy Kay
- ScreenDaily
In a new New York Times profile about the last 18 tumultuous months at Warner Bros. Discovery, company CFO Gunnar Wiedenfels said “you don’t make friends” via the studio’s now-infamous cost-cutting approach. His boss, CEO David Zaslav, certainly has not.
Take the comments Zaslav gave the Nyt about the WGA strike. No sooner than he seemed to start courting the creative class he needs to fuel his company’s future, the CEO steps in it by implying the same scribes might now be overpaid: “So what if we overpay? I’ve never regretted overpaying for great talent or a great asset.”
Nice negging. Yes, he’s calling those he says he’s overpaying “a great talent,” but he’s also suggesting they’re not worth the pricepoint — at least that’s the way it’s being taken by many, and perhaps that’s all that matters. Paging Dale Carnegie...
Take the comments Zaslav gave the Nyt about the WGA strike. No sooner than he seemed to start courting the creative class he needs to fuel his company’s future, the CEO steps in it by implying the same scribes might now be overpaid: “So what if we overpay? I’ve never regretted overpaying for great talent or a great asset.”
Nice negging. Yes, he’s calling those he says he’s overpaying “a great talent,” but he’s also suggesting they’re not worth the pricepoint — at least that’s the way it’s being taken by many, and perhaps that’s all that matters. Paging Dale Carnegie...
- 11/15/2023
- by Christian Blauvelt
- Indiewire
Exclusive: Article updated at 2:54Pm Screenings are being set up this week for streamers Amazon Prime Video, Apple and Netflix to check out and potentially acquire Warner Bros’ axed Looney Tunes movie Coyote vs. Acme after the studio’s phone ran off the hook the entire weekend from angry filmmakers and talent reps over their third feature film kill after Batgirl and Scoob Holiday Haunt!
The more egregious Hollywood sin with Coyote vs. Acme is that it’s a finished film was intended for a theatrical release, while the other two movies were still in the works.
Of those kicking the tires, even though no deals have been drafted, I hear Amazon is a leading contender given the fact that Courtenay Valenti, the Head of Film, Streaming and Theatrical for Amazon Studios and MGM, was a big champion and linchpin for the movie while she was President of Production...
The more egregious Hollywood sin with Coyote vs. Acme is that it’s a finished film was intended for a theatrical release, while the other two movies were still in the works.
Of those kicking the tires, even though no deals have been drafted, I hear Amazon is a leading contender given the fact that Courtenay Valenti, the Head of Film, Streaming and Theatrical for Amazon Studios and MGM, was a big champion and linchpin for the movie while she was President of Production...
- 11/13/2023
- by Anthony D'Alessandro
- Deadline Film + TV
Disney CEO Bob Iger noted Wednesday that the linear advertising market may not be “as strong as we would like it to be” but “it’s certainly not as bad as some people think it is,” standing in contrast to Warner Bros. Discovery’s gloomier outlook earlier in the day.
The comments came during the company’s fourth quarter earnings call for 2023 and stand in contrast to Warner Bros. Discovery CFO Gunnar Wiedenfels’ take on the ad landscape in their own earnings call Wednesday.
“In terms of advertising, we are actually finding that linear is a little bit stronger than we had expected it would be. It’s not back as much as we would like, it’s still challenged, but it’s not as bad as it had been. So we’ve seen some slight improvement,” Iger said. He went on to note that while the tech sector is “still somewhat weak,...
The comments came during the company’s fourth quarter earnings call for 2023 and stand in contrast to Warner Bros. Discovery CFO Gunnar Wiedenfels’ take on the ad landscape in their own earnings call Wednesday.
“In terms of advertising, we are actually finding that linear is a little bit stronger than we had expected it would be. It’s not back as much as we would like, it’s still challenged, but it’s not as bad as it had been. So we’ve seen some slight improvement,” Iger said. He went on to note that while the tech sector is “still somewhat weak,...
- 11/8/2023
- by Kayla Cobb
- The Wrap
Warner Bros. Discovery CEO David Zaslav is “not giving up on linear” as he looks to the future. The executive went as far as to praise Disney’s recent deal with Charter Communications as a good example of how to move forward in the space during the company’s third quarter earnings call amid a growing trend of declining linear ad revenue for major media companies.
“We’re not giving up. We really believe in linear and in fact, there was a lot of noise around the Charter deals with Disney,” Zaslav said during the company’s third quarter earnings call for 2023. “But to Bob’s credit, that was a deal. That deal was structured in a way that’s really favorable for both parties and favorable for the ecosystem.”
Linear advertising decreased 13% in the third quarter for Warner Bros. Discovery, while direct-to-consumer ad revenue increased 29%.
The CEO emphasized on...
“We’re not giving up. We really believe in linear and in fact, there was a lot of noise around the Charter deals with Disney,” Zaslav said during the company’s third quarter earnings call for 2023. “But to Bob’s credit, that was a deal. That deal was structured in a way that’s really favorable for both parties and favorable for the ecosystem.”
Linear advertising decreased 13% in the third quarter for Warner Bros. Discovery, while direct-to-consumer ad revenue increased 29%.
The CEO emphasized on...
- 11/8/2023
- by Kayla Cobb
- The Wrap
WarnerBros. Discovery CEO David Zaslav expressed optimism on Wednesday that a deal between the AMPTP and SAG-AFTRA will be reached soon, which would put an end to the historic strike.
“We are hopeful we will reach a resolution to the SAG-AFTRA strike soon. We made a last and final offer, which met virtually all of the union’s goals and includes the highest wage increase in 40 years and believe it provides for a positive outcome for all involved,” Zaslav said on the company’s third quarter earnings call. “We recognize that we need our creative partners to feel valued and rewarded and look forward to both sides getting back to the business of telling great stories.”
Executives at Warner Bros. Discovery also made note of the financial impact both the SAG-AFTRA and the WGA strikes have had on the company’s finances. During the prepared comments at the top of the earnings call,...
“We are hopeful we will reach a resolution to the SAG-AFTRA strike soon. We made a last and final offer, which met virtually all of the union’s goals and includes the highest wage increase in 40 years and believe it provides for a positive outcome for all involved,” Zaslav said on the company’s third quarter earnings call. “We recognize that we need our creative partners to feel valued and rewarded and look forward to both sides getting back to the business of telling great stories.”
Executives at Warner Bros. Discovery also made note of the financial impact both the SAG-AFTRA and the WGA strikes have had on the company’s finances. During the prepared comments at the top of the earnings call,...
- 11/8/2023
- by Adam Chitwood
- The Wrap
Warner Bros. Discovery CEO David Zaslav weighed in on the state of the SAG-AFTRA negotiations Wednesday, saying the studios’ offer had “met virtually all of the union’s goals.”
“We are hopeful we will reach a resolution to the SAG-AFTRA strike soon. We made a last and final offer, which met virtually all of the union’s goals and includes the highest wage increase in 40 years and believe it provides for a positive outcome for all involved. We recognize that we need our creative partners to feel valued and rewarded and look forward to both sides getting back to the business of telling great stories,” Zaslav said on the company’s earnings call.
Zaslav has been one of the four main studio heads at the table alongsideDisney’s Bob Iger, NBCUniversal’s Donna Langley and Netflix’s Ted Sarandos. He also participated in negotiations during the writers’ strike.
On Monday night,...
“We are hopeful we will reach a resolution to the SAG-AFTRA strike soon. We made a last and final offer, which met virtually all of the union’s goals and includes the highest wage increase in 40 years and believe it provides for a positive outcome for all involved. We recognize that we need our creative partners to feel valued and rewarded and look forward to both sides getting back to the business of telling great stories,” Zaslav said on the company’s earnings call.
Zaslav has been one of the four main studio heads at the table alongsideDisney’s Bob Iger, NBCUniversal’s Donna Langley and Netflix’s Ted Sarandos. He also participated in negotiations during the writers’ strike.
On Monday night,...
- 11/8/2023
- by Caitlin Huston
- The Hollywood Reporter - Movie News
Warner Bros. Discovery, led by CEO David Zaslav, shrunk its overall losses on higher revenues as the impact of the dual Hollywood strikes weighed on the major studio, as did a sluggish U.S. ad market.
Wbd’s overall revenues rose 2 percent to $9.97 billion, just shy of a revenue estimate of $10 billion. And the net loss at the Hollywood studio fell back to $407 million, against a year-earlier loss of $2.28 billion. The latest loss at the owner of CNN, Discovery and the Max streaming platform included $1.75 billion in one-time pre-tax amortization charges.
The adjusted Ebitda rose 22 percent to $2.96 billion, and the third quarter earnings per-share loss of 17 cents was well off an analyst estimate for a 9 cents loss. Wbd, the result of an earlier combination of Discovery and WarnerMedia, ended September with total global streaming subscribers falling .7 percent to 95.1 million, compared to 95.8 million at the end of the second quarter and...
Wbd’s overall revenues rose 2 percent to $9.97 billion, just shy of a revenue estimate of $10 billion. And the net loss at the Hollywood studio fell back to $407 million, against a year-earlier loss of $2.28 billion. The latest loss at the owner of CNN, Discovery and the Max streaming platform included $1.75 billion in one-time pre-tax amortization charges.
The adjusted Ebitda rose 22 percent to $2.96 billion, and the third quarter earnings per-share loss of 17 cents was well off an analyst estimate for a 9 cents loss. Wbd, the result of an earlier combination of Discovery and WarnerMedia, ended September with total global streaming subscribers falling .7 percent to 95.1 million, compared to 95.8 million at the end of the second quarter and...
- 11/8/2023
- by Etan Vlessing
- The Hollywood Reporter - Movie News
Warner Bros. Discovery reported a narrowed but wider-than-expected net loss of $417 million, or a diluted loss of 17 cents per share, for its third quarter of 2023. The loss included $269 million in pre-tax restructuring expenses.
Meanwhile, the media giant’s total revenue grew 2% year over year to $9.98 billion, beating Wall Street estimates. Total adjusted Ebitda for the quarter grew 22% year over year to $2.97 billion. Analysts surveyed by Zacks Investment Research were expecting Wbd to report a loss of 12 cents per share on revenue of $9.94 billion for its third quarter of 2023.
But shares of Wbd fell as much as 12.9% in pre-market trading on Wednesday after chief financial officer Gunnar Wiedenfels said the company would be unlikely to hit its gross leverage target range of 2.5 to 3 times adjusted Ebitda by the end of 2024 without a meaningful recovery of the television ad market.
“It is becoming increasingly clear now that, much like 2023, 2024 will have its share of complexity,...
Meanwhile, the media giant’s total revenue grew 2% year over year to $9.98 billion, beating Wall Street estimates. Total adjusted Ebitda for the quarter grew 22% year over year to $2.97 billion. Analysts surveyed by Zacks Investment Research were expecting Wbd to report a loss of 12 cents per share on revenue of $9.94 billion for its third quarter of 2023.
But shares of Wbd fell as much as 12.9% in pre-market trading on Wednesday after chief financial officer Gunnar Wiedenfels said the company would be unlikely to hit its gross leverage target range of 2.5 to 3 times adjusted Ebitda by the end of 2024 without a meaningful recovery of the television ad market.
“It is becoming increasingly clear now that, much like 2023, 2024 will have its share of complexity,...
- 11/8/2023
- by Lucas Manfredi
- The Wrap
Warner Bros. Discovery shed more streaming subscribers in Max’s first full quarter of existence: July-September 2023. The company lost 700,000 streaming subs in the quarter, it reported on Wednesday; Max and Discovery+ now combine for 95.1 million streaming subscribers.
Wbd’s streaming business was able to turn a profit in the third quarter — just like it did at the beginning of the year. Adjusted Ebitda at direct-to-consumer was $111 million. The same segment lost money in Q2, but surprised with positive Ebitda in Q1, which is also the last time Wbd grew its streaming-subscriber base.
The loss of subs in the past two quarters is not really unexpected. Max, which launched on May 23, is a combination of the former HBO Max and Discovery+. While Discovery+ remains available as a standalone platform, it is now pretty redundant for folks who had previously subscribed to both of the Warner Bros. Discovery streaming services.
Warner Bros.
Wbd’s streaming business was able to turn a profit in the third quarter — just like it did at the beginning of the year. Adjusted Ebitda at direct-to-consumer was $111 million. The same segment lost money in Q2, but surprised with positive Ebitda in Q1, which is also the last time Wbd grew its streaming-subscriber base.
The loss of subs in the past two quarters is not really unexpected. Max, which launched on May 23, is a combination of the former HBO Max and Discovery+. While Discovery+ remains available as a standalone platform, it is now pretty redundant for folks who had previously subscribed to both of the Warner Bros. Discovery streaming services.
Warner Bros.
- 11/8/2023
- by Tony Maglio
- Indiewire
HBO programming chief Casey Bloys said on Thursday he’s already had to “adjust across the board” his slate for HBO and Max because of the impact of the recently ended writers and still-ongoing actors strikes. With SAG-AFTRA still picketing the Warner Bros. Discovery offices (and others), those adjustments are proving to be anything but final.
One-on-one with Bloys following a presentation of his 2024 slate, IndieWire asked what pending decisions still have to be made in the event a seemingly imminent SAG deal again proves elusive. Are there still potential cancellations coming? Could the axe even drop on a series previously picked up for another season? And could something as small as continuity seal the fate for a project that has sat on the shelf too long?
“All of the above,” Bloys responded. He’s been through lengthy shutdowns before; remember Covid?
Bloys, of course, hopes push does not come to shove,...
One-on-one with Bloys following a presentation of his 2024 slate, IndieWire asked what pending decisions still have to be made in the event a seemingly imminent SAG deal again proves elusive. Are there still potential cancellations coming? Could the axe even drop on a series previously picked up for another season? And could something as small as continuity seal the fate for a project that has sat on the shelf too long?
“All of the above,” Bloys responded. He’s been through lengthy shutdowns before; remember Covid?
Bloys, of course, hopes push does not come to shove,...
- 11/2/2023
- by Brian Welk
- Indiewire
Until recently, Spectrum accounted for 20 percent of Disney’s linear-television reach. The Charter video provider now represents exactly zero percent of the reach for eight Disney cable channels: Baby TV, Disney Junior, Disney Xd, Freeform, Fxm, Fxx, Nat Geo Wild, and Nat Geo Mundo.
Their dropped carriage on a major player may be a death sentence for the channels. And Disney could just be first at the gallows.
Carriage (cable) and retransmission (broadcast) deals, in which an MVPD (Multichannel Video Programming Distributor) or virtual MVPD (vMVPD) pay a channel provider for the rights to include their networks in a customer’s video package, do not all come up for renewal at once. Spectrum v. Disney may have set precedent like a court case; going forward, why would any cable company continue to pay Disney for those seemingly disposable eight channels?
Steven Cahall, the lead equity analyst at bank Wells Fargo,...
Their dropped carriage on a major player may be a death sentence for the channels. And Disney could just be first at the gallows.
Carriage (cable) and retransmission (broadcast) deals, in which an MVPD (Multichannel Video Programming Distributor) or virtual MVPD (vMVPD) pay a channel provider for the rights to include their networks in a customer’s video package, do not all come up for renewal at once. Spectrum v. Disney may have set precedent like a court case; going forward, why would any cable company continue to pay Disney for those seemingly disposable eight channels?
Steven Cahall, the lead equity analyst at bank Wells Fargo,...
- 9/14/2023
- by Tony Maglio
- Indiewire
The two Hollywood strikes that have ground TV and film productions to a standstill are bad for business — and Warner Bros. Discovery is working diligently to resolve them as quickly as possible, according to CFO Gunnar Wiedenfels.
“It’s an unfortunate situation… We have to get back to work,” Wiedenfels said, speaking Thursday at the Bank of America Media, Communications and Entertainment Conference. Wbd is working toward a solution in which “everybody feels they are respected and rewarded fairly.”
From an operational perspective, “we’re really shut down,” Wiedenfels said. “There’s very little content production going on right now.”
His comments come after Warner Bros. Discovery last week disclosed that it expects the dual strikes to result in $300 million-$500 million hit to full-year 2023 earnings, revising downward its expected adjusted earnings for the year to $10.5 billion-$11 billion. The WGA writers strike began on May 2 and actors who are members of...
“It’s an unfortunate situation… We have to get back to work,” Wiedenfels said, speaking Thursday at the Bank of America Media, Communications and Entertainment Conference. Wbd is working toward a solution in which “everybody feels they are respected and rewarded fairly.”
From an operational perspective, “we’re really shut down,” Wiedenfels said. “There’s very little content production going on right now.”
His comments come after Warner Bros. Discovery last week disclosed that it expects the dual strikes to result in $300 million-$500 million hit to full-year 2023 earnings, revising downward its expected adjusted earnings for the year to $10.5 billion-$11 billion. The WGA writers strike began on May 2 and actors who are members of...
- 9/14/2023
- by Todd Spangler
- Variety Film + TV
Keeping all of entertainment giant Warner Bros. Discovery’s content for its streaming service Max alone was “incomprehensible” and streaming prices would continue to rise because for too long valuable content was “given away” too cheaply, CFO Gunnar Wiedenfels told the Bank of America Securities Media, Communications & Entertainment Conference on Thursday.
“For a decade, in streaming, an enormously valuable amount of quality content has been given away well below fair market value, and I think that’s in the process of being corrected,” he said. “We’ve seen price increases across essentially the entire competitive set. We’ve increased prices, especially internationally, where a lot of the HBO Max launches were very, very much targeted at the maximum possible subscriber number, not necessarily the maximum possible economics from the launch.”
Speaking in a virtual session, because he has Covid, per an introduction, the executive also said the company is trying...
“For a decade, in streaming, an enormously valuable amount of quality content has been given away well below fair market value, and I think that’s in the process of being corrected,” he said. “We’ve seen price increases across essentially the entire competitive set. We’ve increased prices, especially internationally, where a lot of the HBO Max launches were very, very much targeted at the maximum possible subscriber number, not necessarily the maximum possible economics from the launch.”
Speaking in a virtual session, because he has Covid, per an introduction, the executive also said the company is trying...
- 9/14/2023
- by Georg Szalai
- The Hollywood Reporter - Movie News
Warner Bros. Discovery CFO Gunnar Wiedenfels echoed recent sentiments from Netflix and other major TV and film producers, saying the industry must resolve the ongoing strikes and “get back to work.”
That’s easier said than done, of course, with the WGA and SAG-AFTRA both dug in and little movement in talks with the AMPTP. Predictions of a breakthrough by Labor Day have given way to pessimism about a deal getting done at all this fall. Appearing virtually at an investor conference hosted by BofA Securities, Wiedenfels called the strikes “an unfortunate situation.” Wbd CEO David Zaslav, he said, “is spending a lot of his time with his peers on trying to resolve it as quickly as possible. Content is the backbone of what we do. We’ve got to get back to work, and we have to find a way to get to a solution that’s fair and...
That’s easier said than done, of course, with the WGA and SAG-AFTRA both dug in and little movement in talks with the AMPTP. Predictions of a breakthrough by Labor Day have given way to pessimism about a deal getting done at all this fall. Appearing virtually at an investor conference hosted by BofA Securities, Wiedenfels called the strikes “an unfortunate situation.” Wbd CEO David Zaslav, he said, “is spending a lot of his time with his peers on trying to resolve it as quickly as possible. Content is the backbone of what we do. We’ve got to get back to work, and we have to find a way to get to a solution that’s fair and...
- 9/14/2023
- by Dade Hayes
- Deadline Film + TV
The stock markets are back open after a long Labor Day weekend, and Warner Bros Discovery is already bracing traders for a bit of bad news. On Tuesday, the company revealed that the ongoing writers and actors strikes will negatively impact its 2023 earnings to the tune of $300-$500 million.
Helping to cushion the blow, however, is a revised forecast for the company’s free cash flow, which is now expected to be “at least” $5 billion. With “Barbie” dominating the box office and fewer overall expenses due to the strikes, Warner Bros. Discovery is now predicting more than $1.7 billion of free cash flow for the third quarter alone, which ends at the conclusion of this month.
Cash rules everything around us, and shares of Wbd are currently trading up a few percentage points. Of course, that’s after getting absolutely C.R.E.A.M.-ed last week as collateral damage to the Charter-Disney standoff.
Helping to cushion the blow, however, is a revised forecast for the company’s free cash flow, which is now expected to be “at least” $5 billion. With “Barbie” dominating the box office and fewer overall expenses due to the strikes, Warner Bros. Discovery is now predicting more than $1.7 billion of free cash flow for the third quarter alone, which ends at the conclusion of this month.
Cash rules everything around us, and shares of Wbd are currently trading up a few percentage points. Of course, that’s after getting absolutely C.R.E.A.M.-ed last week as collateral damage to the Charter-Disney standoff.
- 9/5/2023
- by Tony Maglio
- Indiewire
Warner Bros. Discovery expects the ongoing Hollywood strikes to have a $300 million-$500 million negative impact on the company’s 2023 earnings.
In an SEC filing Tuesday, the David Zaslav-led media giant stated it was expecting lower adjusted earnings for the full year of between $10.5 billion-$11 billion, based on the projection that the continuing WGA and SAG-AFTRA work stoppages will mean a hit of $300 million to $500 million for the company.
The WGA strike began May 2 after the union failed to ink a new deal with the studios’ org, the AMPTP. SAG-AFTRA joined them on the picket lines July 14.
“While Wbd is hopeful that these strikes will be resolved soon, it cannot predict when the strikes will ultimately end,” Warner Bros. Discovery said in the filing. “With both guilds still on strike today, the company now assumes the financial impact to Wbd of these strikes will persist through the end of 2023.”
Warner Bros.
In an SEC filing Tuesday, the David Zaslav-led media giant stated it was expecting lower adjusted earnings for the full year of between $10.5 billion-$11 billion, based on the projection that the continuing WGA and SAG-AFTRA work stoppages will mean a hit of $300 million to $500 million for the company.
The WGA strike began May 2 after the union failed to ink a new deal with the studios’ org, the AMPTP. SAG-AFTRA joined them on the picket lines July 14.
“While Wbd is hopeful that these strikes will be resolved soon, it cannot predict when the strikes will ultimately end,” Warner Bros. Discovery said in the filing. “With both guilds still on strike today, the company now assumes the financial impact to Wbd of these strikes will persist through the end of 2023.”
Warner Bros.
- 9/5/2023
- by Jennifer Maas
- Variety Film + TV
Streamflation has pinched viewers’ wallets: Nearly all the major services have hiked up their prices, in some cases multiple times, within the last year. And it may not be the end, as a new analysis suggests that some players have room left to increase prices.
The price hikes, along with cutbacks on content spending and marketing, are a key tool streamers have to curb their losses as Wall Street keeps a tighter rein on unprofitable streaming ventures. Though there are other options for squeezing more revenue from an existing customer base, like leaning into ad-subsidized services or cracking down on password sharing, raising prices is the most straightforward route to a stronger bottom line. And it doesn’t seem to be driving away streamers’ customers — yet.
Price increases on monthly subscriptions are the “quickest way to see immediate average revenue per user growth,” Omdia media and entertainment analyst Sarah Henschel told TheWrap.
The price hikes, along with cutbacks on content spending and marketing, are a key tool streamers have to curb their losses as Wall Street keeps a tighter rein on unprofitable streaming ventures. Though there are other options for squeezing more revenue from an existing customer base, like leaning into ad-subsidized services or cracking down on password sharing, raising prices is the most straightforward route to a stronger bottom line. And it doesn’t seem to be driving away streamers’ customers — yet.
Price increases on monthly subscriptions are the “quickest way to see immediate average revenue per user growth,” Omdia media and entertainment analyst Sarah Henschel told TheWrap.
- 9/5/2023
- by Lucas Manfredi
- The Wrap
Warner Bros. Discovery has lowered its 2023 adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) forecast to $10.5 billion to $11.0 billion, a hit of $300 million to $500 million, “predominantly due to the impact of the strikes,” compared with the previously targeted low end of the $11.0 billion to $11.5 billion range.
In a regulatory filing Tuesday, the company — led by CEO David Zaslav, who has been very engaged in negotiating with Hollywood unions to end the work stoppage — didn’t detail when it expects the strikes could end, but updated its guidance that had previously assumed they would be resolved by early September, as management had mentioned during its second-quarter earnings conference call.
“Uncertainty in the studio segment has increased with the dual strikes,” Wbd CFO Gunnar Wiedenfels had said back then. “This may have implications for the timing and performance of the remainder of the film slate, as well as our ability to produce and deliver content.
In a regulatory filing Tuesday, the company — led by CEO David Zaslav, who has been very engaged in negotiating with Hollywood unions to end the work stoppage — didn’t detail when it expects the strikes could end, but updated its guidance that had previously assumed they would be resolved by early September, as management had mentioned during its second-quarter earnings conference call.
“Uncertainty in the studio segment has increased with the dual strikes,” Wbd CFO Gunnar Wiedenfels had said back then. “This may have implications for the timing and performance of the remainder of the film slate, as well as our ability to produce and deliver content.
- 9/5/2023
- by Georg Szalai
- The Hollywood Reporter - Movie News
In the wake of large-scale staff reductions across Warner Bros Discovery that largely tailed off earlier this year, the marketing department at Max has now also experienced layoffs.
The tally of workers let go in the streaming unit is a double-digit number, a person familiar with the situation told Deadline. Because of the need to integrate the HBO Max and Discovery+ streaming outlets into the combined Max service that launched last May, no reductions had been seen in the marketing group up to this point. In the immediate aftermath of the $43 billion WarnerMedia-Discovery deal, billions of cost savings were promised, with the total rising from $3 billion initially to beyond $4 billion earlier this year.
Wbd has not identified specific subscriber trends related to the launch of Max, though the company reported a total of 95.8 million subs across all services as of June 30. That represented a sequential loss of 1.8 million subscribers,...
The tally of workers let go in the streaming unit is a double-digit number, a person familiar with the situation told Deadline. Because of the need to integrate the HBO Max and Discovery+ streaming outlets into the combined Max service that launched last May, no reductions had been seen in the marketing group up to this point. In the immediate aftermath of the $43 billion WarnerMedia-Discovery deal, billions of cost savings were promised, with the total rising from $3 billion initially to beyond $4 billion earlier this year.
Wbd has not identified specific subscriber trends related to the launch of Max, though the company reported a total of 95.8 million subs across all services as of June 30. That represented a sequential loss of 1.8 million subscribers,...
- 8/16/2023
- by Dade Hayes
- Deadline Film + TV
In the first round of corporate earnings since the double strike began, the financial hits are starting to come into view.
While hoping and planning for a resolution in September, Hollywood studios, streamers and affiliated businesses have begun forecasting lower revenue, content spend and, in some cases, a lower outlook for the year. Because while some may be able to stem the tide of a production shutdown in the short term, the financial danger increases as the strike goes on further into the fall and the release schedule suffers.
The biggest impact so far may have been seen with Endeavor, which owns talent agency WME, with CFO Jason Lublin warning Aug. 8 that the company expects to see a hit of about $25 million a month in revenue for the quarter ending Sept. 30. Uncertainty about the length and financial impact of the strike caused the company to pull its full-year guidance.
On Aug.
While hoping and planning for a resolution in September, Hollywood studios, streamers and affiliated businesses have begun forecasting lower revenue, content spend and, in some cases, a lower outlook for the year. Because while some may be able to stem the tide of a production shutdown in the short term, the financial danger increases as the strike goes on further into the fall and the release schedule suffers.
The biggest impact so far may have been seen with Endeavor, which owns talent agency WME, with CFO Jason Lublin warning Aug. 8 that the company expects to see a hit of about $25 million a month in revenue for the quarter ending Sept. 30. Uncertainty about the length and financial impact of the strike caused the company to pull its full-year guidance.
On Aug.
- 8/16/2023
- by Caitlin Huston
- The Hollywood Reporter - Movie News
The writers and actors strikes are good for business? Fake news, says the guilds. Well, technically, the WGA called that point-of-view “calculated disinformation.” Of course, they’re also the union back at the bargaining table with the studios of the Alliance of Motion Picture and Television Producers (AMPTP).
Truth is, the companies are saving money, but only in the short term. With no productions comes no production costs — the free cash flow is truly free-cash flowing. It’s been a temporary reprieve for both the strapped streamers who now realize their business isn’t bulletproof and for the legacy media companies reliant on the dying linear-television medium. But that’s the whole thing; it’s temporary.
Still, the town’s chief financial officers are making hay while the sun shines and the studio lights do not. Better-than-expected results in the June quarter have given way to improved forecasts for the September one.
Truth is, the companies are saving money, but only in the short term. With no productions comes no production costs — the free cash flow is truly free-cash flowing. It’s been a temporary reprieve for both the strapped streamers who now realize their business isn’t bulletproof and for the legacy media companies reliant on the dying linear-television medium. But that’s the whole thing; it’s temporary.
Still, the town’s chief financial officers are making hay while the sun shines and the studio lights do not. Better-than-expected results in the June quarter have given way to improved forecasts for the September one.
- 8/15/2023
- by Brian Welk and Tony Maglio
- Indiewire
Paramount Global hosted its second-quarter earnings call Tuesday amid the ongoing writers and actors strikes in Hollywood. Just like every other major media company that has reported its Q2 results already, the CBS parent company’s execs addressed the work stoppages with hopes for a timely resolution and comments on how it will affect their business operations.
“We anticipate continued delays in production for the duration of the strikes, and as such, we estimate free cash flow in the back half of the year will be significantly higher than previously expected,” Paramount CFO Naveen Chopra said.
Chopra’s projection comes a week after Warner Bros. Discovery CFO Gunnar Wiedenfels stated that the company had saved more than $100 million in Q2 as a result of delayed and scrapped productions during the Hollywood strikes.
The Writers Guild of America has been on strike since May 2, as a result of being unable to...
“We anticipate continued delays in production for the duration of the strikes, and as such, we estimate free cash flow in the back half of the year will be significantly higher than previously expected,” Paramount CFO Naveen Chopra said.
Chopra’s projection comes a week after Warner Bros. Discovery CFO Gunnar Wiedenfels stated that the company had saved more than $100 million in Q2 as a result of delayed and scrapped productions during the Hollywood strikes.
The Writers Guild of America has been on strike since May 2, as a result of being unable to...
- 8/7/2023
- by Jennifer Maas
- Variety Film + TV
The actors’ and writers’ strike continuing to cripple Hollywood has led to Warner Bros Discovery saving in the “low $100 million range” in three months.Executives reported their spending has plummeted during the second financial quarter of the year as they revealed their earnings on Thursday. (03.08.23) Negotiations are still to resume between the unions and the studios, but Wbd – whose stable includes its flagship Warner Bros film studio, as well as HBO and CNN Global – says it is currently projecting an “early September” end to the strikes and return to TV and film production. Variety reported Gunnar Wiedenfels – chief financial officer of Warner Bros Discovery (Wbd) – revealed on a call with financial analysts about the company’s results from 1 April to 30 June that “uncertainty” among studios as a result of the strikes “may have implications for the timing and performance of the remainder of the film slate, as well as our...
- 8/4/2023
- by BANG Showbiz Reporter
- Bang Showbiz
Warner Bros. Discovery CFO Gunnar Wiedenfels’ comment on Thursday that the media giant has saved $100 million since the strike began is not going over well with the actors and writers who are holding out for a better contract.
“That’s like half of what you spent on ‘The Flash’ movie that nobody saw,” “Mythic Quest” writer, actress and comedian Naomi Ekperigin told TheWrap in front of of Paramount Studios on Thursday.
“That really gets you out of the hole you put yourself into when you made the merger,” she joked.
“Community” star Charley Koontz told TheWrap: “I think it’s interesting that today $100 million, is a lot to them. That’s a great savings for them today. Before, it was a pittance, it’s not worth making anything that [will earn less than] that… But that’s also a fraction of what we’re asking for. So you know, if [Warner Bros. Discovery CEO...
“That’s like half of what you spent on ‘The Flash’ movie that nobody saw,” “Mythic Quest” writer, actress and comedian Naomi Ekperigin told TheWrap in front of of Paramount Studios on Thursday.
“That really gets you out of the hole you put yourself into when you made the merger,” she joked.
“Community” star Charley Koontz told TheWrap: “I think it’s interesting that today $100 million, is a lot to them. That’s a great savings for them today. Before, it was a pittance, it’s not worth making anything that [will earn less than] that… But that’s also a fraction of what we’re asking for. So you know, if [Warner Bros. Discovery CEO...
- 8/4/2023
- by Sharon Knolle
- The Wrap
The Barbie media conglomerate is planning for a September return to work.
Warner Bros Discovery (Wbd) CEO David Zaslav has called for a swift resolution to the US actors and writers’ strikes, even though the company revealed that it saved around $100m during its second quarter because of the stoppages.
Discussing the media giant’s results with analysts, Zaslav said he is “very focused” on the labour dispute. “It needs to be resolved in a way that the creative community feels fairly compensated and fully valued,” he urged.
“We have to focus on getting that done,” Zaslav added. “I’m...
Warner Bros Discovery (Wbd) CEO David Zaslav has called for a swift resolution to the US actors and writers’ strikes, even though the company revealed that it saved around $100m during its second quarter because of the stoppages.
Discussing the media giant’s results with analysts, Zaslav said he is “very focused” on the labour dispute. “It needs to be resolved in a way that the creative community feels fairly compensated and fully valued,” he urged.
“We have to focus on getting that done,” Zaslav added. “I’m...
- 8/3/2023
- by John Hazelton
- ScreenDaily
“Barbie is really important for us,” beamed Warner Bros. Discovery CEO David Zaslav on the conglom’s Q2 earnings call about what will be the first pic to hit $1 billion under his reign.
In celebrating the pic’s success, he indicated that the movie would hit streaming service Max in the fall.
However, on a long theatrical window.
“We really believe in the motion picture window — let it play out … go into PVOD, take it through the windows that have worked forever [in the business],” he said. “When it goes on Max, it will have a good impact in the fall.”
Separately, Deadline has noticed that Barbie will hit airlines this September.
Related: 2023 Premiere Dates For New & Returning Series On Broadcast, Cable & Streaming
Zaslav since taking charge of Warner Bros Discovery has championed the theatrical window passionately, unlike the former Warner Bros Media administration that upset the town with their theatrical-day-and-date experiment on HBO Max during Covid.
In celebrating the pic’s success, he indicated that the movie would hit streaming service Max in the fall.
However, on a long theatrical window.
“We really believe in the motion picture window — let it play out … go into PVOD, take it through the windows that have worked forever [in the business],” he said. “When it goes on Max, it will have a good impact in the fall.”
Separately, Deadline has noticed that Barbie will hit airlines this September.
Related: 2023 Premiere Dates For New & Returning Series On Broadcast, Cable & Streaming
Zaslav since taking charge of Warner Bros Discovery has championed the theatrical window passionately, unlike the former Warner Bros Media administration that upset the town with their theatrical-day-and-date experiment on HBO Max during Covid.
- 8/3/2023
- by Anthony D'Alessandro
- Deadline Film + TV
One of the most exciting prospects for cord-cutters around Warner Bros. Discovery’s transition of HBO Max into Max was that the new subscription video-on-demand (SVOD) platform would be a streaming home for all of the media conglomerate’s various properties. While the streamer has already integrated a substantial amount of the lifestyle programming that was previously only available via discovery+, as of now, Max has not taken advantage of the extensive sports rights that Wbd holds in the United States.
7-Day Free Trial $9.99+ / month Max via amazon.com
Get 20% Off Your Next Year of Max When Pre-Paid Annually
However, during Thursday’s earnings call with analysts and investors, the company’s CEO David Zaslav confirmed that Wbd was quickly moving forward with plans to bring sports to the service.
“We have good deals here in the U.S. and around the world that provide real value to us,” Zaslav said.
7-Day Free Trial $9.99+ / month Max via amazon.com
Get 20% Off Your Next Year of Max When Pre-Paid Annually
However, during Thursday’s earnings call with analysts and investors, the company’s CEO David Zaslav confirmed that Wbd was quickly moving forward with plans to bring sports to the service.
“We have good deals here in the U.S. and around the world that provide real value to us,” Zaslav said.
- 8/3/2023
- by Matt Tamanini
- The Streamable
While Warner Bros Discovery CEO David Zaslav on this morning’s Q2 earnings call for the conglom is “hopeful that all sides will get back to the negotiating room soon and that these strikes get resolved in a way that the writers and actors feel that they are fairly compensated,” Wbd CFO Gunnar Wiedenfels served up info that there were “modest cash savings” when it came to the dual strikes.
“We estimate were in the low $100M million range during the quarter,” specified Wiedenfels.
This morning for the conglom in Q2, free cash flow was by far the standout financial metric, hitting $1.7 billion, more than double the $789 million from Q2 2022 and outstripping Wall Street forecasts.
Wiedenfels said that Wbd’s outlook is for another $1.7B to get freed up in cash flow for Q3 with “subsequentially larger savings from the strikes” and the Barbie box office boom (which is approaching...
“We estimate were in the low $100M million range during the quarter,” specified Wiedenfels.
This morning for the conglom in Q2, free cash flow was by far the standout financial metric, hitting $1.7 billion, more than double the $789 million from Q2 2022 and outstripping Wall Street forecasts.
Wiedenfels said that Wbd’s outlook is for another $1.7B to get freed up in cash flow for Q3 with “subsequentially larger savings from the strikes” and the Barbie box office boom (which is approaching...
- 8/3/2023
- by Anthony D'Alessandro
- Deadline Film + TV
As the WGA strike approaches its 100-day mark and actors have joined the picket lines, Warner Bros. Discovery CEO David Zaslav weighed in on Hollywood’s labor unrest during the company’s second quarter earnings call Thursday, calling for creatives to be fairly compensated.
The company’s CFO also revealed that its current financial models are based around the unions returning to work in “early September.”
“We’re in the business of storytelling. Our goal is to tell great stories,” Zaslav said. “And we cannot do any of that without the entirety of the creative community. The great creative community with the writers, directors, editors, producers, actors and the whole below the line crew, our job is to enable and empower them to do their best work. We’re hopeful that all sides will get back to the negotiating table so that the strikes get resolved in a way that...
The company’s CFO also revealed that its current financial models are based around the unions returning to work in “early September.”
“We’re in the business of storytelling. Our goal is to tell great stories,” Zaslav said. “And we cannot do any of that without the entirety of the creative community. The great creative community with the writers, directors, editors, producers, actors and the whole below the line crew, our job is to enable and empower them to do their best work. We’re hopeful that all sides will get back to the negotiating table so that the strikes get resolved in a way that...
- 8/3/2023
- by Kayla Cobb
- The Wrap
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