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Warner Bros. Discovery: A tricky path

19 September 2023
Access report

Warner Bros. Discovery is grappling with declining legacy cable revenues and its $48 billion debt burden. DTC losses have attenuated but de-leveraging will be trickier post-2023 as many of the easier cost-savings have been achieved.

The US launch of its DTC offering, Max, attempts to dovetail IP from across Warner Bros., alongside Discovery's food, lifestyle and documentary programming, and soon, CNN. Adding sports may prove more challenging.

In Europe, WBD’s rational strategy would be to maintain a mixed distribution strategy, agreeing exclusive deals for its DTC platform with incumbent aggregators such as Sky.

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  • US content distribution: Studios go direct to consumer

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    Despite relying on a narrow IP base, US content production is booming, overwhelming other markets and seeking alternative distribution to cinema.

    Responding to the rise of Netflix and Amazon Prime, studios seek to shift distribution from wholesale to retail—but only Disney may succeed.

    Most content is likely to remain accessed by consumers through bundles. Provided they engage with aggregation, European broadcasters can adjust to the new studio model.

    Access report

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    4 February 2022

    BT has entered exclusive discussions with Discovery to fold BT Sport into a joint venture including the UK version of Eurosport, ending sale discussions with DAZN

    The upgraded sports service will allow Discovery—soon merging with WarnerMedia—to considerably boost its content line-up in a genre where rivals Disney and Netflix are absent

    The ecosystem—the Premier League, UEFA, and Sky—will likely welcome the deal

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