News kept on churning this week from Sunday morning until end of Friday on the Warner Bros.
There have been industrywide shifts in the ad market, the box office and the pay-TV ecosystem.
And there have been multiple rounds of restructuring.
Warner Bros DiscoveryWarner Bros Discovery
Half of the companys Networks division revenue came from distribution in 2022, with advertising making up 43%.
A large chunk of that revenue is at risk across the industry.
Thats an ominous sign for any owner of dozens of cable networks.
Magnolia, the Texas-based venture founded by Chip and Joanna Gaines, alsomaneuvered its wayto a different reporting structure.
Streaming continues to be a major storyline, of course.
This years major streaming initiative has been the blending together of HBOMaxand Discovery+ in the newly renamed Max.
(Discovery+ is still available separately.)
It seems utterly logical not to make a run at lock up everything and have it all siloed.
The business prospered for decades with syndication and a waterfall of revenue streams.
Getting some notion of that back will only help.
Netflix selling ads just like NBC in the 50s?
Major media companies embracing FAST and licensing to big streamers?
A similar crossroads is approaching for WBD in the sports business.
The company faces a version of Disneys dilemma with ESPN.
Cord-cutting is rapidly transforming the sports sector, despite consistent tune-in.
WBD, though, has no broadcast outlet or stations to amplify its pay-TV internet telecasts.
As with Paramounts Simon & Schuster, the business is considered non-core.
The structure and timing of a deal are not yet clear.
The quality level of new releases doesnt appear to be the primary culprit, Creutz added.
The two films simply underperformed relative to their IP and studio pedigree and brand history.
Unfortunately, this is consistent with what has generally been a disappointing summer slate.
There may be a little profit-taking.
Management has a good narrative as to how they will get to the other side.
The question is, can they pull it off?
