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Warner Bros. Discovery Knows It Can't Compete With Disney. That's a Good Thing for Investors
By Dani Cook | Nasdaq
August 7, 2022
<snip>
Playing to its strengths
The merger that founded Warner Bros. Discovery saw the new company assume $43 billion of debt from WarnerMedia, with Zaslav primarily focused on paying it down. In addition to a move away from underperforming live-action family content, the executive shut down streaming service CNN+, stopped production on various European series, and oversaw the departure of multiple WarnerMedia top execs. The CEO is on a mission to cut any part of the business that does not guarantee profits, especially in terms of content.
HBO has built a brand on prestige TV aimed at adult viewers, with its most-watched shows to date being the graphic fantasy drama Game of Thrones and Euphoria, a series with strong themes of drug addiction and violence. These top-rated shows fit right in with HBO's extensive library of award-winning mature dramas, which have helped boost HBO Max. A move away from live-action family content that doesn't lend itself to the service's most popular content is a step in the right direction.
Additionally, one of Warner Bros. Discovery's most prominent brands is DC, which has started differentiating itself from Marvel by offering grittier, more mature superhero titles. The recent direction for DC fits HBO Max's business model of adult content, with the service recently seeing success with the original DC series Peacemaker. The TV-MA show had the biggest single-day performance of a Max Original, with the finale's viewership up 44% from its premiere.
Although Warner Bros. Discovery is moving away from live-action family content, it will continue producing animation geared toward adults and children. While family animated series don't suit HBO Max's adult-focused library, the move makes sense given how popular and cost-effective the genre is. In July, 90% of the most popular children and family TV series were animated, with Warner Bros. Discovery owning three of the top 10 titles. The company's ownership of Cartoon Network and animated series from Discovery allow HBO Max to continue profiting from successful content with little risk.
<snip>
https://www.nasdaq.com/articles/war...with-disney.-thats-a-good-thing-for-investorsRead more
By Dani Cook | Nasdaq
August 7, 2022
<snip>
Playing to its strengths
The merger that founded Warner Bros. Discovery saw the new company assume $43 billion of debt from WarnerMedia, with Zaslav primarily focused on paying it down. In addition to a move away from underperforming live-action family content, the executive shut down streaming service CNN+, stopped production on various European series, and oversaw the departure of multiple WarnerMedia top execs. The CEO is on a mission to cut any part of the business that does not guarantee profits, especially in terms of content.
HBO has built a brand on prestige TV aimed at adult viewers, with its most-watched shows to date being the graphic fantasy drama Game of Thrones and Euphoria, a series with strong themes of drug addiction and violence. These top-rated shows fit right in with HBO's extensive library of award-winning mature dramas, which have helped boost HBO Max. A move away from live-action family content that doesn't lend itself to the service's most popular content is a step in the right direction.
Additionally, one of Warner Bros. Discovery's most prominent brands is DC, which has started differentiating itself from Marvel by offering grittier, more mature superhero titles. The recent direction for DC fits HBO Max's business model of adult content, with the service recently seeing success with the original DC series Peacemaker. The TV-MA show had the biggest single-day performance of a Max Original, with the finale's viewership up 44% from its premiere.
Although Warner Bros. Discovery is moving away from live-action family content, it will continue producing animation geared toward adults and children. While family animated series don't suit HBO Max's adult-focused library, the move makes sense given how popular and cost-effective the genre is. In July, 90% of the most popular children and family TV series were animated, with Warner Bros. Discovery owning three of the top 10 titles. The company's ownership of Cartoon Network and animated series from Discovery allow HBO Max to continue profiting from successful content with little risk.
<snip>
https://www.nasdaq.com/articles/war...with-disney.-thats-a-good-thing-for-investorsRead more