CEO David Zaslav, Warner Bros. In his first call to Wall Street analysts at Discovery, he reiterated his plan for a simplified approach to managing a newly merged company.
“Our goal is to increase long-term shareholder value and asset value, not just subsidies,” he said. “We will not spend extra money to attract customers.
The comments follow the company’s earlier statement that it won’t be trying to “win the cost wars” on streaming. Netflix, which spent $20 billion on content this year, is suddenly backing down despite its lead, with new subscribers and questions about its business model. Warner Bros. Discovery is taking a more moderate path with its twin services HBO Max and Discovery+, which will soon be combined into a single offering.
Zaslav also revealed the company’s plan for the launch of the new company on May 18, which will be the party of advertisers. Zaslav said the network’s portfolio, which includes written and unwritten news, sports and lifestyle, gives the company a “unique hand”.
Before the call, Warner Bros. Discovery has announced its first quarter results, but only for Discovery, as the combination with WarnerMedia does not close until the end of the March 31 quarter. Gross revenue was up 13% to $3.16 billion, US advertising revenue was up 5% and distribution revenue was up 11%.
The company’s earnings statement says ad revenue has increased “thanks to continued monetization from our next-gen initiative content offerings.” The return was a factor that eclipsed the new company and its broad assets: “a worldly decline in the pay-TV ecosystem and an overall poor rating.”
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Source: Deadline
Lloyd Grunewald is an author at “The Fashion Vibes”. He is a talented writer who focuses on bringing the latest entertainment-related news to his readers. With a deep understanding of the entertainment industry and a passion for writing, Lloyd delivers engaging articles that keep his readers informed and entertained.
