After taking a $2.8 billion net loss in the recent quarter, Warner Bros. Discovery CEO David Zaslav defended the severe cuts to the company’s animation and streaming portfolios on today’s earnings call, suggesting that more are likely to come.
Zaslav expressed this during the call.
“Spending money with abandon all in the service of building sub numbers is in our view deeply flawed,”
His remarks come after a time period in which Warner Bros. Discovery drastically reduced its selection of animated programming, canceled features like Batgirl, and eliminated content from streaming platforms like HBO Max.
Every DC Movie and Series Affected by the Warner Bros. Discovery Merger
Zaslav defended these cuts, saying.
“we’ve learned what doesn’t work” and that the service is “getting the content that isn’t working off.”
WB Discovery’s priority going forward will be on franchises, reiterating the network’s previous stance against direct-to-streaming movies, which he said did “virtually nothing” for audience and retention. Zaslav said:
“The audience will tell you what they love. They’ll spend time with it, and they’ll watch it and rewatch it,”
He later added,
“We’re trying to be deliberate about the shows that are helping us.”
As the firm continues to recover from the shock of its merger, both Zaslav and WB Discovery streaming and games CEO JB Perette have hinted that significant changes are on the horizon. For example, the cost of HBO Max, which has been unchanged for three years, is expected to increase “north” in the near future, as predicted by Perette. Moreover, Zaslav disclosed that the company’s merged HBO Max and Discovery service would debut in the spring of 2023, not the summer as previously announced.
Zaslav repeatedly mentioned what he defined as a “challenging environment,” stating that Warner Bros. has “conviction” and that “we’re getting through this.”
For WB’s restructuring, which has led to layoffs, high-profile departures, and divergent ideas for the future of its greatest properties, Zaslav himself has received considerable criticism from both creatives and audiences.
