Just how much content Warner Bros. Discovery”. cut off from the WarnerMedia merger just a few months ago? 825 million dollars worth.
On Friday, the company announced that it had written off an $825 million charge following the deal. USD for content. This figure includes 496 million $329 million in impairment losses on content. USD content creation write-offs.
“The content impairments and development write-offs resulted from a global strategic content review following the merger,” the company wrote.
The impairment and write-down figures were broken down into the company’s studio business (including film and television studios), network business (including linear TV networks) and DTC business, which includes streaming services such as HBO Max and Discovery+. . Content disruptions were for applications that had already been developed or were in production, while development write-offs were for content that was still in development.
And that dramatic figure probably doesn’t cover Bat girl or Scoob!: The Holiday Ghost, two films that were slated to debut on the HBO Max streaming platform by this week. (Those movies will likely be accounted for next quarter.) But it would include a write-down related to the movie Miracle twinsanother DC project for HBO Max that was in the works and was Maybefore the end of the II quarter.
Filmmakers Bat girl was told the project would not move forward earlier this month, despite being well overdue. Sources at the company said it planned to shelve the film for tax purposesand the write-offs released on Friday would confirm that.
The second quarter write-down likely includes a number of programs that were devalued TBS and TNTas well as related expenses CNN+, the ill-fated streaming service that WBD is disabled just a few weeks after its launch. The statement also noted that the company had 208 million during the quarter.
TBS and TNT significantly reduced programming after the merger, instead leaning toward sports and unscripted. TBS cut comedies Chad (which already was finished production during the season) Full front with Samantha Beeand Tracy Morgan The last OGand TNT announced the end date Snowpiercer. Development of the script was put on hold at both networks, and the company picked up not renew your deal to present the SAG Awards.
On the company’s earnings call Thursday, WBD broadcast chief JB Perrette said children’s and animated content for linear and streaming, live movies and shows for TBS and TNT were most responsible for the content recalibration. [Turner] indicates failure to generate sufficient ratings or increase monetization potential.
WBD headed by the Director General David Zaslav and CFO Gunnar Wiedenfels said they are aiming for about $3 billion in merger-related savings over the next few years. Those savings will go toward consolidating technology systems and offices, as well as layoffs, though a rethink of how and where it spends money on content is also part of the plan.
“Having content that really resonates with people is much more important than just having a lot of content,” Zaslav said during the company’s earnings call on Thursday.
“We will continue to have a healthy investment in content, but by combining these two content portfolios we see smart opportunities to do so much faster than in previous plans,” added Perrette. “These are tough decisions, but we are committed to being disciplined with a framework that guides our investment in content for maximum return.”