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

Warner Bros. Discovery (WBD) reported Yesterday’s overwhelming This autumn outcomes revealed a internet lack of $2.1 billion, together with $217 million, from the streaming division. That is regardless of the corporate saying the success of its new authentic collection “The Final of Us,” which averaged greater than 15 million viewers, and the just lately launched online game Hogwarts Legacy, which retailed for greater than $850 million in simply two weeks.

The corporate barely missed analysts’ income estimates of roughly $11.36 billion and earned $11 billion—a major bounce from $9.82 billion within the third quarter of 2022. billion.

The corporate additionally did not beat subscriber estimates, including simply 1.1 million subscriptions throughout HBO, HBO Max and Discovery+, bringing the brand new complete to 96.1 million versus an estimated 1.6 million internet subscribers. WBD additionally missed expectations final quarter, gaining solely 2.8 million subscribers as an alternative of the anticipated internet enhance of three.27 million. WBD continues to lag behind streaming large Netflix, which has 230 million subscribers worldwide.

The brand new addition of HBO Max subscribers was pushed primarily by the streaming service returning to Amazon Prime Video Channels, in addition to debuts of standard reveals like “The Final of Us” and a second season of “The White Lotus”, which received 10. Emmy and two Golden Globe awards. The corporate just lately introduced that the second season of “The Final of Us” is coming.

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

On the brilliant facet, WBD CEO David Zaslav instructed buyers that the merger restructuring is lastly full. Within the final 10 months, the corporate has made a number of movie and TV cancellations in addition to layoffs to cut back its debt mountain.

“We’ve got taken daring and decisive motion over the past 10 months and far of our restructuring is behind us. We’ve got full command and management of our enterprise and we at the moment are one firm. We’ve got an excellent management crew that pushes us ahead, everybody rows in the identical path. And collectively, we make our enterprise higher. and we’re centered on making it stronger,” Zaslav stated in the course of the earnings name. “Final yr was a yr of rebuilding. 2023 can be a yr of development.”

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

It additionally confirmed that Discovery+ will stay a standalone service for purchasers keen to proceed paying the decrease $4.99 per thirty days worth. In the meantime, HBO Max will proceed to be mixed with Discovery+ content material. Final month, WBD raised the worth of HBO Max’s ad-free plan for the primary time, rising the fee from $14.99 per thirty days to $15.99 per thirty days.

Now that the restructuring of WBD is completed, it will probably concentrate on increasing its authentic content material catalogue. Zaslav, for instance, delivered thrilling information for “Lord of the Rings” followers and introduced that Warner Bros Studios has entered right into a deal to make a number of movies based mostly on the collection.

Zaslav stated the corporate may also “take full benefit” of its different IP, together with “Superman”, “Batman” and “Harry Potter”.

Lately, DC Studios co-chairs James Gunn and Peter Safran shared 10 upcoming films and TV initiatives like “Superman: Legacy”, “The Batman – Half II”, “Supergirl: Girl of Tomorrow” and extra.

“I consider now we have an enormous benefit available in the market with the IP now we have,” added Zaslav. “We’ve got the strongest hand within the business, with probably the most full portfolio of belongings and world-renowned franchises, personalities and storytelling IP in sports activities, information, nonfiction and leisure in nearly each area of the world and in each language.”

Headlines coming this yr are “Shazam! Fury of the Gods, which can be launched on March 17; “The Flash”, which can be launched this summer time on June 16; and “Aquaman and the Misplaced Kingdom,” starring Jason Momoa, will hit theaters on December 25. Different movies embody “Barbie” starring Margot Robbie and Ryan Gosling, “Dune: Half Two” and Timothée Chalamet in “Wonka.”

Yesterday, earlier than the earnings name, HBO announced He stated he has ordered a “IT”-inspired Max authentic collection known as “Welcome to Derry”, which would be the prequel to the 2017 film “IT” and “IT Chapter Two.”