What's happened
Warner Bros. Discovery reported a larger-than-expected quarterly loss, with advertising revenue in its networks segment falling 11%. Despite this, the company's streaming unit saw a 72% jump in adjusted profit. The company is considering additional cost-cutting measures and plans to raise subscription fees for its Max streaming platform. Investors showed some confidence, with shares rising 3.1% after the earnings report.
What's behind the headline?
What the papers say
According to Business Insider UK, Warner Bros. Discovery's first-quarter earnings report showed a 7% decline in revenue, missing Wall Street's estimates. The NY Post highlighted the larger-than-expected quarterly loss and the 11% drop in advertising revenue in the networks segment. The Guardian noted the broader industry impact of last year's Hollywood strikes, which affected multiple media companies. Business Insider UK also reported on the company's plans for additional cost-cutting measures and raising subscription fees for its Max streaming platform.
How we got here
Warner Bros. Discovery has been navigating a challenging media landscape, marked by declining traditional TV viewership and the rise of streaming services. The company has been focusing on expanding its streaming offerings, including Max and Discovery+, to capture a larger share of the digital market. Last year's Hollywood strikes further complicated the situation, leading to delays in content production and impacting revenue. The company's recent earnings report reflects these ongoing challenges and the strategic measures being taken to address them.
Go deeper
- What are the main reasons for Warner Bros. Discovery's quarterly loss?
- How is the company's streaming unit performing compared to its traditional segments?
- What are the potential impacts of the planned cost-cutting measures and subscription fee increases?
Common question
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The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.
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Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.
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Hollywood is a neighborhood in the central region of Los Angeles, California. Its name has come to be a shorthand reference for the U.S. film industry and the people associated with it.