Aluminum Falcon
DIS Veteran
- Joined
- Aug 9, 2021
the only difference is they are able to cut out the middle man now (the cable company). except cable companies usually provide your internet, so expect those prices to skyrocket in the future
DIS Shareholders and Stock Info ONLY
- Thread starter hhisc16
- Start date
Per CNBC this morning, streaming numbers were all lower than forecast, that will hurt them and possible the other streamers.
https://www.cnbc.com/video/2022/08/...-bros-discovery-shelves-90m-batgirl-film.html
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
https://finance.yahoo.com/news/warner-bros-discovery-quarterly-revenue-202539420.html
Warner Bros. Discovery to merge streaming services HBO Max, Discovery+
Thu, August 4, 2022 at 4:25 PM
(Reuters) -Warner Bros. Discovery Inc said on Thursday it would merge the HBO Max streaming service with Discovery+ as a single offering, combining WarnerMedia's dramas, comedies and movies with Discovery's reality shows.
The move, which confirms a Reuters report L1N2ZE2VJ, is seen as an attempt to lure more customers as streaming services face a slowdown in subscriber growth after a boom during the pandemic and steadily rising frequency of cancellations.
Warner Bros. Discovery also said it was exploring the opportunity for a fast or free ad-supported streaming
offering.
The newly merged company, which reported a second-quarter net loss of $3.4 billion and a slight decline in revenue, is aiming to reconfigure overlapping businesses from WarnerMedia and Discovery.
The media giant was forged by the $43 billion merger of Discovery Inc and AT&T's WarnerMedia, home to the "Harry Potter" and "Batman" franchises, cable networks such as CNN and the streaming service HBO Max.
Warner Bros. Discovery, which reported combined results for the first time, also disclosed 92.1 million streaming subscribers at the end of the second quarter.
Prior to the merger, HBO and HBO Max boasted a combined 76.8 million subscribers, including 48.6 million in the United States. Discovery+ ended the first quarter with 24 million subscribers.
The net loss includes about $2 billion of amortization of intangibles, about $1 billion of restructuring and other
charges, and $983 million of transaction and integration expenses, the company said.
Customers ending their services hover at around 37% in the United States - a rate that could well increase as surging inflation forces a paring of discretionary spending.
Shares of the company, which reported revenue of $9.83 billion, fell 8% in extended trading.
Warner Bros. Discovery to merge streaming services HBO Max, Discovery+
Thu, August 4, 2022 at 4:25 PM
(Reuters) -Warner Bros. Discovery Inc said on Thursday it would merge the HBO Max streaming service with Discovery+ as a single offering, combining WarnerMedia's dramas, comedies and movies with Discovery's reality shows.
The move, which confirms a Reuters report L1N2ZE2VJ, is seen as an attempt to lure more customers as streaming services face a slowdown in subscriber growth after a boom during the pandemic and steadily rising frequency of cancellations.
Warner Bros. Discovery also said it was exploring the opportunity for a fast or free ad-supported streaming
offering.
The newly merged company, which reported a second-quarter net loss of $3.4 billion and a slight decline in revenue, is aiming to reconfigure overlapping businesses from WarnerMedia and Discovery.
The media giant was forged by the $43 billion merger of Discovery Inc and AT&T's WarnerMedia, home to the "Harry Potter" and "Batman" franchises, cable networks such as CNN and the streaming service HBO Max.
Warner Bros. Discovery, which reported combined results for the first time, also disclosed 92.1 million streaming subscribers at the end of the second quarter.
Prior to the merger, HBO and HBO Max boasted a combined 76.8 million subscribers, including 48.6 million in the United States. Discovery+ ended the first quarter with 24 million subscribers.
The net loss includes about $2 billion of amortization of intangibles, about $1 billion of restructuring and other
charges, and $983 million of transaction and integration expenses, the company said.
Customers ending their services hover at around 37% in the United States - a rate that could well increase as surging inflation forces a paring of discretionary spending.
Shares of the company, which reported revenue of $9.83 billion, fell 8% in extended trading.
Warner results were much worse than expected:
https://finance.yahoo.com/news/warn...umored-layoffs-hbo-max-rebrand-165928430.html
Pre-market it's down 13% currently. DIS only down $0.70, I would have expected worse given that this is yet another nail in the super high growth streaming coffin.
https://finance.yahoo.com/news/warn...umored-layoffs-hbo-max-rebrand-165928430.html
Pre-market it's down 13% currently. DIS only down $0.70, I would have expected worse given that this is yet another nail in the super high growth streaming coffin.
If anything it's positive news for Disney as it majorly weakens a big competitor.
The new CEO does seem to be betting against streaming growth though.
clarker99
DIS Veteran
- Joined
- May 15, 2019
DIS reports next week. Should be a fun call.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
https://finance.yahoo.com/m/7201251b-95ea-3e7f-a800-75aa4c4cb21b/warner-gets-really-real-with.html
Warner Gets Really Real With Streaming Plan
Canceled movies and a modest long-term subscriber target show new HBO Max owner is serious about playing smart
By Dan Gallagher
Aug. 5, 2022 10:48 am ET
Leave it to a media giant to find a colorful way to advertise its new approach.
An eventful second-quarter report from Warner Bros. Discovery late Thursday was preceded by news the day before that the company pulled the plug on “Batgirl,” a $90 million production that was already in the can to the point of going through test screenings. Those screenings reportedly indicated that the movie would be a flop in theaters, and Warner’s WBD -16.39%▼ new top brass thus decided that a tax write-off would be more valuable than putting it on its HBO Max streaming service.
The company previously known for its vast slate of reality shows got even more real on Thursday. Chief Financial Officer Gunnar Wiedenfels said a “deep dive” into WarnerMedia’s financials following the closing of its merger with Discovery Inc. in early April is forcing the new combined company to cut $1 billion from its target for adjusted earnings before interest, taxes, depreciation and amortization for this year and $2 billion from its 2023 target. Warner also revised down the combined subscriber count for its HBO Max and Discovery+ services by about 10 million, citing factors like unactivated accounts from AT&T’s T -0.44%▼ wireless business.
The company’s revenue for the second quarter—its first as a combined operation—was also 17% short of Wall Street’s projections. Warner’s stock slid 14% early Friday morning. But near-term financials were almost a side note; the company used the vast bulk of its 94-minute conference call Thursday to further outline a business philosophy that diverges from the “streaming first” approach of many of its media peers. Chief Executive David Zaslav said Warner “cannot find an economic case” for releasing an expensive movie direct to streaming. He added that the company will “fully embrace theatrical” while preserving “optionality” on distribution and release windows.
The timing is good. Investors have started taking a harsh look at the economics of streaming following a major stumble by Netflix, which is now losing subscribers after crossing the 220 million mark. And theatrical exhibition is coming back into vogue; Paramount Global PARA -5.31%▼ reported second-quarter results earlier Thursday that were greatly helped by its blockbuster “Top Gun: Maverick,” which is now 70 days in theaters at a time when most movies are pulled to streaming after 45 days.
Still, Warner is hardly turning its back on streaming. The company said Thursday that it is considering adding a free, ad-supported tier to the premium and advertising-lite options it currently offers. But that isn’t expected until after the company combines its HBO Max and Discovery+ services into one offering, which it plans to start rolling out next summer. Viewers shouldn’t be expecting a bargain. HBO Max already offers one of the streaming industry’s more expensive plans at $14.99 a month for ad-free viewing, but Mr. Zaslav said Thursday that streaming plans are generally underpriced as a result of capital markets prioritizing subscriber growth. He predicted that “there will be a lot of people that are willing to pay a lot more for the quality that we have.”
On balance, Warner’s report Thursday was the clearest signal yet that the company will be managed for cash flow first, instead of chasing streaming subscribers. The company backed that view up further by setting a realistic target of 130 million subscribers for its combined services by 2025—up about 38 million from its current number. Note that Disney DIS -1.78%▼ still expects to add about 100 million subscribers just to its Disney+ service by the end of its 2024 fiscal year, which would likely require a lot more Marvel and Star Wars fans out there who have somehow not signed on yet. Warner’s harsh reality show may eventually prove the bigger hit.
Warner Gets Really Real With Streaming Plan
Canceled movies and a modest long-term subscriber target show new HBO Max owner is serious about playing smart
By Dan Gallagher
Aug. 5, 2022 10:48 am ET
Leave it to a media giant to find a colorful way to advertise its new approach.
An eventful second-quarter report from Warner Bros. Discovery late Thursday was preceded by news the day before that the company pulled the plug on “Batgirl,” a $90 million production that was already in the can to the point of going through test screenings. Those screenings reportedly indicated that the movie would be a flop in theaters, and Warner’s WBD -16.39%▼ new top brass thus decided that a tax write-off would be more valuable than putting it on its HBO Max streaming service.
The company previously known for its vast slate of reality shows got even more real on Thursday. Chief Financial Officer Gunnar Wiedenfels said a “deep dive” into WarnerMedia’s financials following the closing of its merger with Discovery Inc. in early April is forcing the new combined company to cut $1 billion from its target for adjusted earnings before interest, taxes, depreciation and amortization for this year and $2 billion from its 2023 target. Warner also revised down the combined subscriber count for its HBO Max and Discovery+ services by about 10 million, citing factors like unactivated accounts from AT&T’s T -0.44%▼ wireless business.
The company’s revenue for the second quarter—its first as a combined operation—was also 17% short of Wall Street’s projections. Warner’s stock slid 14% early Friday morning. But near-term financials were almost a side note; the company used the vast bulk of its 94-minute conference call Thursday to further outline a business philosophy that diverges from the “streaming first” approach of many of its media peers. Chief Executive David Zaslav said Warner “cannot find an economic case” for releasing an expensive movie direct to streaming. He added that the company will “fully embrace theatrical” while preserving “optionality” on distribution and release windows.
The timing is good. Investors have started taking a harsh look at the economics of streaming following a major stumble by Netflix, which is now losing subscribers after crossing the 220 million mark. And theatrical exhibition is coming back into vogue; Paramount Global PARA -5.31%▼ reported second-quarter results earlier Thursday that were greatly helped by its blockbuster “Top Gun: Maverick,” which is now 70 days in theaters at a time when most movies are pulled to streaming after 45 days.
Still, Warner is hardly turning its back on streaming. The company said Thursday that it is considering adding a free, ad-supported tier to the premium and advertising-lite options it currently offers. But that isn’t expected until after the company combines its HBO Max and Discovery+ services into one offering, which it plans to start rolling out next summer. Viewers shouldn’t be expecting a bargain. HBO Max already offers one of the streaming industry’s more expensive plans at $14.99 a month for ad-free viewing, but Mr. Zaslav said Thursday that streaming plans are generally underpriced as a result of capital markets prioritizing subscriber growth. He predicted that “there will be a lot of people that are willing to pay a lot more for the quality that we have.”
On balance, Warner’s report Thursday was the clearest signal yet that the company will be managed for cash flow first, instead of chasing streaming subscribers. The company backed that view up further by setting a realistic target of 130 million subscribers for its combined services by 2025—up about 38 million from its current number. Note that Disney DIS -1.78%▼ still expects to add about 100 million subscribers just to its Disney+ service by the end of its 2024 fiscal year, which would likely require a lot more Marvel and Star Wars fans out there who have somehow not signed on yet. Warner’s harsh reality show may eventually prove the bigger hit.
clarker99
DIS Veteran
- Joined
- May 15, 2019
If companies were looking at Netflix they should of realized how terrible the model was/is. They burn through billions of dollars of cash and never make a profit. The long game for Netflix was create their own content (burn cash) instead of license. They chose quantity over quality and it is backfiring. All that content and Netflix has Stranger things as a tent pole IP.
Warner focusing on theatrical is fine but the cinema is not exactly the pillar of strength it once was and is dying a slow death. Cancelling Bat Girl (DC is a tent pole IP) doesn't exactly give confidence.
Tweens and Teens of today do not consume TV content. The number of eyeballs looking away from traditional TV and even streaming TV is ever growing. Youtube, twitch, short form vids like tick tock and the way instragram is going. These algorithms hook people in. It is an interesting space to watch going forward. What are people spending their time consuming?
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
DIS+ will have to put out superior content to realize growth. It is simply too easy nowadays to enter the streaming market. Millions of hours of TV and movies from years ago that are no longer copyrighted is available for streamers to distribute for free. And much of it is far superior to what networks air today.
And there's only so many eyeballs to watch an exponentially increasing product choice.
And there's only so many eyeballs to watch an exponentially increasing product choice.
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I totally forgot it is coming. Need to add more to the portfolio. Hopefully we should see some decent revenue growth when Q3 numbers are shared from the summer movies.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
This morning CNBC had some good discussions around Warner-Discovery results. They often make the point on the morning show that Netflix just keeps throwing content out there, hoping something will stick, just as @clarker99 said.
One former NBC head they were talking too said the he suspected Batgirl was a horrible mess of a movie and not just a cost cutting move.
They also talked about the expense of creating a streaming service from scratch vs. being an "arms dealer" and just selling your content to the highest bidder. Sony has taken this route and is doing well with it, but its been no help to the stock price which is down 36% from it's recent high.
I think Disney is too much of a "brand" so they had to create their own service rather than feed others (and inadvertently help fund the creation of content competitors which they did with Netflix for years). Plus with their decades of network and Hulu experience, it's not hard to see why they did it.
ETA: I am not a happy camper today as an owner of WBD via the T split...
One former NBC head they were talking too said the he suspected Batgirl was a horrible mess of a movie and not just a cost cutting move.
They also talked about the expense of creating a streaming service from scratch vs. being an "arms dealer" and just selling your content to the highest bidder. Sony has taken this route and is doing well with it, but its been no help to the stock price which is down 36% from it's recent high.
I think Disney is too much of a "brand" so they had to create their own service rather than feed others (and inadvertently help fund the creation of content competitors which they did with Netflix for years). Plus with their decades of network and Hulu experience, it's not hard to see why they did it.
ETA: I am not a happy camper today as an owner of WBD via the T split...
Headlines a company never likes to see:
Warner Bros. Discovery results 'pretty awful' as growth plan 'looks bleak': Analyst
https://finance.yahoo.com/news/warn...rowth-plan-looks-bleak-analyst-181719269.html
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
This is the cluck that engineered the AT&T, WB, Direct TV financial train wreck. Never forget his name.
https://en.wikipedia.org/wiki/Randall_L._Stephenson
jujubiee4
DIS Veteran
- Joined
- Jan 5, 2013
Honestly when streaming first came out I thought it was the best thing ever.
Now all the companies branch out and start their own. It is too many to deal with.
Right now we have 5..all on some kind of "special".
Last night I saw my husband watching a Bluray which he hasn't done in a year.
Now all the companies branch out and start their own. It is too many to deal with.
Right now we have 5..all on some kind of "special".
Last night I saw my husband watching a Bluray which he hasn't done in a year.
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Oh, I'm aware of his wonderful legacy, as you said above $30B went poof!!!
Luckily I only bought into T just a few quarters ago and missed a lot of the value destruction- I had cash sitting around earning nothing and it was at an all time low and paying nearly a 10% dividend. I collected that for 2 qts then we had the split and a now the 5% dividend. How could I lose
. With the dividends and T actually holding up, I could get back to breakeven pretty quickly if WBD would just do something positive.Yep, truly back to the future! The techies bifurcated and confused things so much that we are going to miss the days of Blockbuster and "be kind rewind".
I still think Disney is best positioned to capitalize on it though - they can create an entertainment and sports hub that resembles cable at a hopefully much lower cost. Between D+, all the legacy networks and fox properties, ESPN, and Hulu they could offer the most expansive package available. And better yet, they could go to the smaller players like Paramount, Peacock, Apple TV and offer to roll them into the package (just like the old days of Hulu). Make ESPN optional to keep the cost down. What TV and movie lover is not getting that streamer package?
jujubiee4
DIS Veteran
- Joined
- Jan 5, 2013
I like this idea. When I asked my family to pick their favorite to stay. My husband said espn+.
(Thank goodness we got a year subscription for a deal 2 days before they announced the price
hike)
The teens in the family love Hulu and they are the only ones that watch. They all picked D+
as 2nd choice. I like HBO Max. Soon as my current specials are over goodbye to Starz Peacock
Showtime Paramount and maybe Netflix. Prob going the Disney bundle route.
I remember when Netflix was King of the town. Then lot of their content got stripped.
Why can't they all come together under a 2 or 3 agreements/bundles? There is going to
be a backlash. Kind of reminds me when there was just a few Disney vloggers. Now that
area has exploded into MANY.
clarker99
DIS Veteran
- Joined
- May 15, 2019
For me, I felt the writing was on the wall when Netflix #1 streamed show for several years in a row was The Office (US version). I was just baffled that Netflix was burning $400-500m a quarter on homemade content while watching other IP's top the charts. IIRC, I think Friends was 2nd.
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