Warner Bros. Discovery continues to lose money despite success of ‘The Last of Us’ and ‘Hogwarts Legacy’

Warner Bros. Discovery is losing money despite successful releases like ‘The Last of Us’ and ‘Hogwarts Legacy’



Warner Bros. Discovery (WBD) reported underwhelming This fall outcomes yesterday, revealing a web lack of one other $2.1 billion, together with $217 million from its streaming division.entertainment industry  That is regardless of the corporate touting the success of its new unique collection “The Last of Us,” which averaged over 15 million viewers, and the not too long ago launched online game Hogwarts Legacy, which noticed greater than $850 million in retail gross sales in simply two weeks.

The corporate simply barely missed analysts’ estimates of almost $11.36 billion in income, incomes $11 billion — a major leap from $9.82 billion in Q3 2022. Additionally, the streaming section elevated by 6% in income at $2.45 billion, beating Wall Road forecasts of $2.39 billion.

Plus, the corporate didn’t beat subscriber estimates, including simply 1.1 million subs throughout HBO, HBO Max and Discovery+, versus a predicted 1.6 million web additions, bringing the brand new complete to 96.1 million. WBD additionally missed expectations final quarter, solely gaining 2.8 million subscribers relatively than the anticipated web add of three.27 million. WBD continues to be behind streaming large Netflix, which boasts 230 million international subscribers.

The brand new addition of HBO Max subscribers was primarily pushed by the streaming service returning to Amazon Prime Video Channels, in addition to the debuts of well-liked exhibits like “The Last of Us” and the second season of “The White Lotus,” which received 10 Emmys and two Golden Globe awards. The corporate recently announced that “The Final of Us” would get a second season.

Nonetheless, HBO Max and Discovery+ have but to change into worthwhile for WBD — which places it in the identical boat as different media corporations. Netflix, however, has turned a revenue.

On the bright-ish facet, WBD CEO David Zaslav advised buyers that the merger-related restructuring is lastly full. Over the previous 10 months, the corporate has applied layoffs together with many film and TV cancellations in an effort to scale back its mountain of debt.

“We took daring, decisive motion during the last 10 months, and the majority of our restructuring is behind us. We’ve got full command and management of our enterprise, and we’re one firm now. We’ve got a unbelievable management workforce transferring us ahead, everybody rowing in the identical course. And collectively, we’re centered on making our companies higher and stronger,” Zaslav mentioned through the earnings name. “Final yr was a yr of restructuring. 2023 might be a yr of constructing.”

Talking of the merger, Zaslav introduced that the brand new HBO Max/Discovery+ streaming service would launch within the subsequent few months. The corporate will reveal extra particulars on April 12 throughout a particular press occasion.

He additionally confirmed that Discovery+ would stay a standalone service for purchasers that wish to hold paying the lower cost of $4.99 per 30 days. In the meantime, HBO Max will nonetheless be mixed with Discovery+ content material. Final month, WBD raised the price of HBO Max’s ad-free plan for the primary time, rising the price from $14.99 to $15.99 per 30 days.

Now that WBD is finished with restructuring, it may concentrate on increasing its unique content material catalog. For example, Zaslav revealed thrilling information for “Lord of the Rings” followers, asserting that Warner Bros Studios struck a deal to make a number of films based mostly on the franchise.

The corporate may even “take full benefit” of its different IP, together with “Superman,” “Batman” and “Harry Potter,” mentioned Zaslav.

Lately, DC Studios co-chairmen James Gunn and Peter Safran shared the ten upcoming film and TV tasks, equivalent to “Superman: Legacy,” “The Batman – Half II,” “Supergirl: Girl of Tomorrow” and extra.

“I consider that we’ve an awesome benefit within the market with the IP that we personal,” Zaslav added. “We’ve got the strongest hand within the trade, with essentially the most full portfolio of property and globally famend franchises, personalities and storytelling IP throughout sports activities, information, nonfiction and leisure, in nearly each area of the globe and in each language.”

Titles coming this yr are “Shazam! Fury of the Gods,” which is able to arrive in theaters on March 17; “The Flash,” which is able to debut this summer season on June 16; and “Aquaman and the Misplaced Kingdom,” starring Jason Momoa, set to premiere on December 25. Different films embrace the “Barbie” film starring Margot Robbie and Ryan Gosling, “Dune: Half Two” and Timothée Chalamet in “Wonka.”

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