Warner Bros. Discovery (WBD) reported disappointing fourth-quarter results yesterday, which revealed a net loss of another $2.1 billion, including $217 million from its broadcast division. This is despite the company touting the success of its new original series “The Last of Us,” which averaged more than 15 million viewers, and the recently released video game “Hogwarts Legacy,” which grossed more than $850 million in sales. retail sales in just two. weeks.
The company barely beat analyst estimates of nearly $11.36 billion in revenue, earning $11 billion, a significant jump from $9.82 billion in Q3 2022. Additionally, the streaming segment increased up 6% in revenue to $2.45 billion, beating Wall Street forecasts of $2.39 billion.
Additionally, the company failed to beat subscriber estimates, adding just 1.1 million subscribers across HBO, HBO Max, and Discovery+, versus expected net additions of 1.6 million, bringing the new total to 96.1. millions. WBD also missed expectations last quarter, gaining just 2.8 million subscribers instead of the anticipated net addition of 3.27 million. WBD still trails streaming giant Netflix, which boasts 230 million global subscribers.
The new addition of HBO Max subscribers was mainly due to the streaming service’s return to Amazon Prime video channels, as well as the debut of popular shows like “The Last of Us” and the second season of “The White Lotus.” , which won 10 Emmy Awards. and two Golden Globe Awards. The company recently announced that “The Last of Us” would have a second season.
However, HBO Max and Discovery+ have yet to become profitable for WBD, which puts it in the same boat as other media companies. Netflix, on the other hand, has made a profit.
On the bright side, WBD CEO David Zaslav told investors that the merger-related restructuring is finally complete. In the past ten months, the company has implemented layoffs along with many movie and TV show cancellations to reduce its mountain of debt.
“We took bold and decisive steps in the last ten months, and most of our restructuring is behind us. We have full command and control of our business, and we are now one company. We have a fantastic leadership team that keeps us moving forward, all rowing in the same direction. And together, we are focused on making our businesses better and stronger,” Zaslav said during the earnings call. “Last year was a year of restructuring. 2023 will be a year of construction”.
Speaking of the merger, Zaslav announced that the new HBO Max/Discovery+ streaming service would launch in the coming months. The company will reveal more details on April 12 during a special press event.
He also confirmed that Discovery+ would remain a standalone service for customers who want to continue paying the lower price of $4.99 per month. Meanwhile, HBO Max will still be bundled with Discovery+ content. Last month, WBD increased the price of HBO Max’s ad-free plan for the first time, increasing the cost from $14.99 to $15.99 per month.
Now that WBD is done with the restructuring, it can focus on expanding its catalog of original content. For example, Zaslav revealed exciting news for fans of “The Lord of the Rings” by announcing that Warner Bros. Studios has reached an agreement to make several films based on the franchise.
The company will also “make the most of” its other IPs, including “Superman,” “Batman” and “Harry Potter,” Zaslav said.
Recently, DC Studios Co-Presidents James Gunn and Peter Safran shared ten upcoming film and television projects, including “Superman: Legacy,” “The Batman – Part II,” “Supergirl: Woman of Tomorrow,” and more.
“I think we have an overwhelming advantage in the market with the intellectual property that we own,” Zaslav added. “We have the strongest hand in the industry, with the most comprehensive portfolio of world-renowned storytelling assets and franchises, personalities and intellectual property in sports, news, nonfiction and entertainment, in virtually every region of the world and in all the languages”.
The titles that will arrive this year are “Shazam! Fury of the Gods”, which will hit theaters on March 17; “The Flash,” which will debut this summer on June 16; and “Aquaman and the Lost Kingdom,” starring Jason Momoa, which opens on December 25. Other movies include the “Barbie” movie, starring Margot Robbie and Ryan Gosling, “Dune: Part Two” and Timothee Chalamet in “Wonka.”
