Warner Bros. Discovery reported its second-quarter results — its first quarterly earnings since the $43 billion merger.
Total direct-to-consumer subscribers for HBO, HBO Max and Discovery+ in the second quarter of 2022 were 92.1 million, an increase of 1.7 million from 90.4 million at the end of the first quarter. The company doesn’t break down the number of OTT streaming services separately, so it’s unclear what the exact numbers are for HBO Max and Discovery+ subscriptions.
The company also reported a decrease of 300,000 domestic users, from 53.3 million to 53 million.
Last quarter, WarnerMedia reported that HBO and HBO Max had a combined 76.8 million subscribers, while Discovery+ had 24 million subscribers. The total number of users exceeds 100 million. The discrepancy from today’s numbers is due to how previous owner AT&T counted wireless customers into plans that bundled HBO Max.
In announcing its second-quarter results, Warner Bros. Discovery Inc. letter“The new definition resulted in 10 million legacy Discovery non-core subscribers and inactive AT&T mobile subscribers being excluded from subscriber counts in the first quarter.”
On its earnings call, the company revealed that the upcoming syndicated streaming service will launch in the U.S. in the summer of 2023, with Latin America also launching the same year. It will be launched in European markets and Asia Pacific in 2024. Warner Bros. Discovery also said it was exploring a free ad-supported tier.
“Once our SVOD service has gained a foothold in the market, we see real potential and are exploring opportunities to offer fast or free ad-supported streaming services that will enable consumers who do not want to pay a subscription fee to access Great library content while simultaneously serving as an entry point to our premium service,” the company said.
In June, AT&T also dropped its new customer program, which offered users HBO Max as a bundled benefit. However, in its second-quarter results, Warner Bros. Discovery said it re-extended its agreement with AT&T.
“AT&T remains an important partner, and we’re excited that HBO Max will continue to be a part of AT&T’s internet and mobile plans,” said Scott Miller, executive vice president of distribution, Warner Bros. Discovery. in a statement.
Although Wall Street expected The company had revenue of $11.91 billion, but reported revenue of $9.8 million for the quarter. Warner Bros. Discovery posted a net loss of $3.4 million, including a $1 million restructuring “and other charges,” the report said.
Discovery and WarnerMedia each reported very different and very different results last quarter. While WarnerMedia’s operating income fell 32.7% year over year, Discovery’s total revenue rose 13% to $3.16 million.
The company’s debt load is about $53 billion, cut costs Achieved $3 billion in savings. That could explain changes to its content lineup as well as the rumored staffing changes.
E.g, Package Layoffs are expected in the coming months due to the restructuring of streaming platforms HBO Max and Discovery+, sources have learned. One source said 70% of developers could be fired. While layoffs are standard in corporate mergers, some sources speculate that the move will result in HBO Max losing executives and will draw a line between scripted and unscripted content operations.
TechCrunch reached out to the company for comment and is awaiting a response.
On the earnings call, Andrew Slaven, executive vice president of global investor strategy, said: “We’ve been able to take a deeper look at our financials and get a better, more complete picture of where we are and the way forward, including identifying some additional and Unexpected challenges have and will continue to gain our attention and attention. The upside is that there is still more room for improvement and cost savings.”
David Zaslav, the new Warner Bros. Discovery CEO, has been on a tear recently, as subscribers were disappointed and outraged by the news of “Batgirl” yesterday. shelved Because of poor reception from test audiences. There’s an estimated $700-90 million loss — 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 Haunt” was also pulled on Wednesday.
Zaslav was removed Six original films From the service, including the rebooted “Witch,” as well as “Moon Landing,” “American Pickle,” “Superintelligence,” “Charming City King,” and “Lockdown.” While content has been removed from streaming services — Netflix, for example — the move was unusual in that Warner Bros. Discovery did it quietly.
Redditors It has been noticed before that some other shows are missing like “Amsterdam”, “Last Space”, “Czech Out”, etc. Lance St. Laurent points out Twitter The “black glue” was also removed without warning. Laurent said it was “disturbing” because the original Max wasn’t the only one to be chopped off. “Vinyl” was a long-cancelled HBO show.
When subscribers wondered why “Full Bloom” was missing from HBO Max’s lineup, the company responded on Twitter, saying,
The company decided last month to discontinue new original programming in parts of Europe, Variety reported. Additionally, it shut down its free streaming service Cinemax Go on July 31.
However, on September 30, HBO Max will get content from Chip and Joanna Gaines Mulan Network. Last year, Gaines partnered with Discovery to launch Magnolia linear and streaming channels. There will still be programming from the Magnolia Network on Discovery+’s platform. HBO Max will get titles like “Fixer Upper: Welcome Home,” “The Lost Kitchen,” “Restoration Road with Clint Harp,” and more. Discovery+ has a very different target audience than HBO Max, so it’s unclear if this is the right move.
return, CNN Original Will have its own hub on Discovery+, moving original series like “Stanley Tucci: Searching for Italy” and “Anthony Bourdain: Parts Unknown” to the service. Shortly after CNN+ shut down, HBO Max picked up CNN headlines like “Who’s Talking to Chris Wallace.”
Zaslav has maintained that the company will focus on smart spending. The worry, however, is that Zaslav may be making content decisions based on making the accounting books look better rather than focusing on pleasing viewers with content they like.
In today’s letter to shareholders, Zaslav wrote: “We believe we are on the right path to achieve our strategic goals and are performing creatively and financially, and can’t be more excited about the future of our company. .”
The company will likely keep its biggest shows on HBO Max. HBO, in particular, received 140 Emmy nominations this year, while The Heirs was the most nominated series with 25.