This spring, a gigantic merger took place in the media market. Discovery Inc. and AT&T announced the finalization of the transaction, which resulted in the creation of the concern Warner Bros. Discoveryi.e. one of the largest media conglomerates in the world.
On Thursday, the new giant announced its financial results for the second quarter of 2022. The presented data show that the merger had a strong impact on its finances. The company generated a loss of $ 3.41 billion in this period.
It’s no secret that, basically, since the closing of the Warner Bros. Discovery has started looking for savings, and one of the areas where these savings are expected to be the greatest is streaming. First, in July, the company announced that it would be abandoning the project original production on the European market, including Poland. On the other hand This week there were reports of large layoffs planned at HBO Max.
The reduction in expenses in the streaming area is also evidenced by the fact that the company abandoned the production of the $ 90 million movie “Batgirl”, which was supposed to go directly to the HBO Max platform. However, this is not the end.
End of HBO Max. A new platform will be created
On Thursday, Warner Bros. Discovery announced quite revolutionary plans related to the future of their VOD platforms. At this point, the company has the aforementioned under its wings HBO Maxand also the service Discovery + and a few other smaller sites. That, however, will change soon.
During the presentation of the financial results, the head of the concern, David Zaslav announced plans to merge HBO Max and Discovery + into one service, the name of which, however, was not disclosed.
With the streaming market in mind, our highest priority now is to launch an integrated VOD service. (…) Our strategy in this segment has evolved over the past year and we really think it shows how we look at it: we don’t want our global monetization plan to depend on it, but we want it to be important
– said David Zaslav, CEO of Warner Bros. Discovery.
When introducing the new platform, we will focus on the markets in which HBO Max is already present. The service will be rolled out sequentially starting in the United States in summer 2023. We will enter Latin America the same year. European markets with HBO Max will wait until the beginning of 2024. At the end of 2024, we will introduce it to key markets in the Asia-Pacific and new European markets
– explained in turn JB Perrette, head of the global streaming department at WBD. It follows from the published listthat in the case of Poland, we should expect the launch of the new service in autumn 2024.
Perrette also noted that the merger of HBO Max and Discovery + could be accelerated in the course of the works. He also stated that according to estimates, up to 130 million subscribers would use the new streaming platform by 2025.
In the second quarter of this year. from Warner Bros. subscription services Discovery, including HBO max and Discovery +, had 92.1 million customers, compared to 90.4 million a quarter earlier.