Warner Bros. Discovery released its second quarter results, its first quarterly profit since $43 billion merger.
The total number of direct subscribers of HBO, HBO Max and Discovery+ in the second quarter of 2022 was 92.1 million people, which is 1.7 million more than at the end of the first quarter (90.4 million subscribers). The company hasn’t broken down the streaming service numbers 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 subscribers, from 53.3 million to 53 million.
in previous quarterWarnerMedia reported 76.8 million HBO and HBO Max subscribers. Discovery+ was 24 million. The total number of subscribers exceeded 100 million people. The discrepancy with today’s numbers stems from how the previous owner, AT&T, counted wireless customers on plans that included HBO Max.
Announcing second quarter results, Warner Bros. Discovery wrote in its letter“The new definition resulted in the exclusion of 10 million legacy non-essential Discovery subscribers and non-activated AT&T mobile subscribers from first-quarter subscribers.”
In June, AT&T also abandoned his plan for new customers who provided HBO Max users as a bonus. However, as announced in the second quarter results, Warner Bros. Discovery said it has renewed its agreement with AT&T.
“AT&T continues to be an important partner and we are thrilled that HBO Max will continue to be part of AT&T’s Internet and Mobility plans,” said Scott Miller, executive vice president of distribution for Warner Bros. discovery. in a statement.
Although Wall Street expected The company’s revenue was $11.91 billion, the company did not reach $9.8 million this quarter. According to the report, Warner Bros. Discovery posted a net loss of $3.4 million, including $1 million in restructuring “and other expenses.”
Discovery and WarnerMedia reported different and very different results for the last quarter. While WarnerMedia’s operating profit was down 32.7% year-over-year, Discovery’s was up 13% on $3.16 million in total revenue.
The company’s debt is about $53 billion. cost reduction to achieve the goal of $3 billion in savings. This could explain the changes to its content line-up, as well as rumors of personnel changes.
For example, Wrapper It is known from sources that layoffs are expected in the coming months due to the restructuring of the streaming platforms HBO Max and Discovery+. One source said that 70% of developers could be fired. While layoffs are standard when it comes to mergers, some sources suggest the move will see HBO Max lose executives and a line will be drawn to separate scripted and non-scripted content operations.
TechCrunch has reached out to the company for comment and is awaiting a response.
During the call, Andrew Slaven, Executive Vice President of Global Investor Strategy, said: “We have been able to dig deeper into the financials and have a much better understanding of where we are and how to move forward, including identifying some additional and unexpected issues that have attracted and will continue to attract our attention. On the positive side, there is even more room for improvement and cost savings.”
The new CEO of Warner Bros. Discovery David Zaslav has been arranging a cancellation lately as subscribers were met yesterday with disappointment and outrage at the news that Batgirl had been taken down. postponed due to poor reception by test audiences. It’s estimated to cost between $70 million and $90 million down the drain, and we’d like to add that this is still less than the short-lived $300 million streaming service. CNN+ that Zaslav cut down in April.
Scoob!: Holiday Haunt was also filmed on Wednesday.
Zaslav removed six original films from service, including the reboot of The Witch, as well as Moonshot, American Cucumber, Super Intelligence, Charm City Kings, and Locked Up. While content is constantly being removed from streaming services – take Netflix, for example – what was unusual about this move was that Warner Bros. Discovery did it invisibly.
Redditors previously noticed that several other shows are missing, such as “Amsterdam”, “Last Space”, “Czech It” and others. Lance Saint Laurent pointed to Twitter that “Vinyl” was also removed without warning. Laurent said it was “troubling” as it wasn’t just the Max originals that were excluded. Vinyl was an HBO show that was canceled a long time ago.
When a follower wondered why “Full Bloom” was missing from the HBO Max lineup, the company responded on Twitter:
The company has decided to stop new original programming in parts of Europe last month, according to Variety. In addition, he closed his free streaming service Cinemax Go on July 31st.
On September 30, however, HBO Max will receive content from Chip and Joanna Gaines. Magnolia network. Gaines partnered with Discovery last year to launch Magnolia, a linear and streaming channel. Discovery+ will continue to use Magnolia Network programs on its platform. HBO Max will get titles like Fixer Upper: Welcome Home, Lost Kitchen, Recovery Road with Clint Harp, and more. Discovery+ has a completely different target audience than HBO Max, so it’s not clear if this was the right move or not.
Also, CNN Originals will get its own hub on Discovery+, and original series like Stanley Tucci: In Search of Italy and Anthony Bourdain: Parts Unknown will move to the service. Shortly after the closure of CNN+, HBO Max received CNN titles for example, “Who’s Talking to Chris Wallace”.
Zaslav was adamant that the company would focus on reasonable spending. However, it is a concern that Zaslav may be making content decisions based on making the ledgers look better rather than satisfying viewers with content they like.
In today’s letter to shareholders, Zaslav wrote: “We are confident that we are on the right track to achieve our strategic goals and are indeed doing well both creatively and financially and are very excited about the future of our company.”
The company is likely to keep the biggest shows on HBO Max. Especially since HBO got 140 Emmy nominations this year, and Legacy was the most nominated series with 25 nominations.
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