Warner Bros. Discovery just revealed its second-quarter results — its first quarter earnings since the $43 billion merger.
HBO, HBO Max and Discovery+ had a total of 92.1 million direct-to-consumer subscribers in the second quarter of 2022, up from 1.7 million with 90.4 million subscribers at the end of the first quarter. The company didn’t break down the number of over-the-top streaming services individually, so it’s unclear what the exact number is in terms of HBO Max and Discovery+ subscriptions.
The company also reported a loss of 300,000 domestic customers, down from 53.3 million to 53 million.
Last quarter, WarnerMedia reported 76.8 million HBO and HBO Max subscribers combined, and Discovery+ had 24 million. The total topped 100 million subscribers. The discrepancy with today’s numbers is due to how the previous owner, AT&T, calculated wireless subscribers on plans that bundled HBO Max.
When announcing the Q2 results, Warner Bros. Discovery wrote in its Letter“The new definition resulted in the exclusion of 10 million old Discovery non-core subscribers and inactive AT&T Mobility subscribers from the Q1 subscriber count.”
During its earnings call, the company revealed that the upcoming United streaming service would launch in the US in the summer of 2023, with Latin America in the same year. It will launch in the European markets and Asia Pacific regions in 2024. Warner Bros. Discovery also said it was exploring a free ad-supported tier.
“Once our SVOD service is firmly established in the market, we see real potential and are exploring opportunities for a fast or free ad-supported streaming offering that will provide consumers who don’t mind a subscription fee for great library content. while at the same time serving as an entry point to our premium service,” the company said.
In June, AT&T also dropped its plan for new customers, which gave users HBO Max as a bundled perk. However, in the Q2 results announced, Warner Bros. Discovery said it has renegotiated its agreement with AT&T.
“AT&T remains an important partner, and we are thrilled that HBO Max will continue to be part of AT&T internet and mobility plans,” said Scott Miller, executive vice president, distribution, Warner Bros. in a statement,
Although Wall Street Be expected At $11.91 billion in revenue, the company missed out on a reported $9.8 million in revenue for the quarter. Warner Bros. Discovery reported a net loss of $3.4 million, including $1 million in restructuring “and other charges,” according to the report.
Discovery and WarnerMedia delivered different and very different results last quarter. While WarnerMedia’s operating income declined 32.7% year-over-year, Discovery saw a 13% increase, with total revenue of $3.16 million.
The company has a debt load of about $53 billion and it is cutting costs To reach the goal of saving $3 billion. This could explain the change in its content lineup as well as the rumored staff change.
For example, wrap Sources have revealed that layoffs are expected in the coming months due to restructuring of streaming platforms HBO Max and Discovery+. A source said that 70% of the development workforce may be laid off. Layoffs are standard when it comes to company mergers, with some sources predicting that the move will result in the loss of HBO Max executives, and that a line will be drawn to separate scripted and unscripted content operations.
Meczyki.Net reached out to the company for comment and is awaiting a response.
During his earnings call, Andrew Slaven, Executive Vice President, Global Investor Strategy, said, “We’ve been able to dig deeper into the financials and get a better, more complete picture of where we are and the way forward, including identifying Also included are some additional and unexpected challenges that will and will continue to attract our attention and attention. The upside is that there is even more room for improvement and cost savings.”
New Warner Bros. Discovery CEO David Zaslav has recently gone on a cancellation spree, as customers were met with disappointment and outrage yesterday over the news that “Batgirl” was removed Due to poor reception from the test audience. An estimated $70 to 90 million goes down the drain — which we’d like to add is still less than the short-lived $300 million streaming service CNN+ that Zaslav axed in April.
“Scoob!: Holiday Hunt” was also pulled on Wednesday.
zaslav removed six original movies Reboots from the service including “The Witches” as well as “Moonshot,” “An American Pickle,” “Superintelligence,” “Charm City Kings,” and “Locked Down.” While content is removed from streaming services all the time—take Netflix, for example—the unusual thing about this move was that Warner Bros.
Redditors A few other shows are missing, like “Amsterdam,” “Final Space,” “Check It Out,” and more. Lance Saint Laurent told Twitter That “vinyl” was also removed without warning. Laurent said it was “disturbing” because Max Originals wasn’t the only one who was axed. “Vinyl” was an HBO show that has been canceled for a long time.
When a customer wondered why “Full Bloom” was missing from HBO Max’s lineup, the company tweeted in response,
As reported by Variety, the company last month decided to discontinue new original programming in parts of Europe. Also, it shut down its free streaming service Cinemax Go on July 31.
However, on September 30th, HBO Max will receive content from Chip and Joanna Gaines. Magnolia Network. Last year, Gaines partnered with Discovery, launching the Magnolia linear and streaming channel. Discovery+ will still have programming from Magnolia Network on its platform. HBO Max will receive titles such as “Fixer Upper: Welcome Home,” “The Lost Kitchen,” “Restoration Road with Clint Harp,” and many more. Discovery+ has a vastly different target audience than HBO Max, so it’s unclear whether it was the right move.
Too, CNN Original Will get its hub on Discovery+, along with original series like “Stanley Tucci: Searching for Italy” and “Anthony Bourdain: Parts Unknown.” Shortly after CNN+ closed, HBO Max received CNN titles such as “Who’s Talking to Chris Wallace”.
Zaslav is adamant that the company will focus on smart spending. However, it is worrying that Zaslav is making content decisions based on improving accounting books rather than focusing on pleasing audiences with the content they love.
In today’s letter to shareholders, Zaslav wrote, “We are confident that we are on the right track to meet our strategic goals and truly excel creatively and financially, and are more excited about the future of our company.” Can’t be.”
It is likely that the company will put on the biggest shows on HBO Max. Especially since HBO garnered 140 Emmy nominations this year, and “Succession” was the most nominated series with 25 nominations.