HBO Max is undergoing a radical transformation – one that will be watched closely from Hollywood to Wall Street. On Thursday, HBO Max and its new brother Discovery+ announced that they will relaunch as a single streaming service in the summer of 2023. Streamers, investors, and employees all eagerly awaited details on the much-rumored changes in the first quarterly report of the newly formed Warner Bros. Discovery, now the parent company of HBO Max he announced that it lost $3.4 billion in its first post-merger quarter and outlined a plan to overhaul its streaming strategy.
Warner Bros. Discovery was formed in April through the merger of Discovery, owners of HGTV and Food Network, with WarnerMedia, which was spun off from telecom giant AT&T. The merger gave the combined company ownership of an extensive portfolio of major television networks including CNN, Food Network, Cartoon Network and Turner Classic Movies. It also acquired ownership of more intellectual property from Warner Bros. spanning everything in the DC Extended Universe.
Days after the merger became official, Warner Bros. CEO David Zaslav made Discovery headlines by canceling CNN+ less than a month after its launch, wiping out Warner’s massive $100 million investment in the Arrival flopped.
HBO Max has been the stronger player in the streaming wars. The first quarter of 2022 added three million subscribers worldwide, compared to Netflix’s drop of one million subscribers over the same period.
And yet change comes.
So what’s the drama?
It was announced earlier this week that Warner Bros. will be shelving much of its content. Eagerly awaited bat girl The $90 million budget film will no longer be released. It was slated to debut on HBO Max later this year. It came as a shock to Batman fans when Michael Keaton was set to reprise his role as a DC superhero for the first time in over 30 years. Warner is also expected to shelve “Scoob!” Continuation.
diversity explained that the reason Warner Bros bat girl Airing on HBO Max, it was all about the money — specifically, the possibility of a tax write-off. The controversial decision was the prelude to the company’s post-merger streamlining outlined on Thursday. Warner Bros. Discovery told Wall Street that it plans to achieve about $3 billion in cost savings.
Before the company’s earnings are announced, The wrap reported The changes will result in the shutdown of HBO Max, significant layoffs of its executives and employees to minimize layoffs at HBO, and a combined streaming service with Discovery+ with tighter separation between scripted and unscripted content operations.
Warner Bros. has not yet announced the name or pricing of the combined streaming service.
Lexi Carson is an Orlando, Florida based writer interested in film, music and culture.
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