David Zaslav, CEO and president of Warner Bros. The newly merged Discovery has said that HBO lost $3 billion last year, unable to recoup the huge sums spent on content, deadline report. This comment comes after cost-cutting measures have generated a huge amount Original content taken from HBO Maxwith the biggest loss coming from the animation department.
In a keynote presentation at the RBC Media conference, Zaslav addressed some of the difficulties that came with the Warner Bros. merger. Discovery, including the need to rethink streaming models. “Right now, we can attract 30 million people to see Euphoria, but they can go on for two months, watch Euphoria and then leave,” explains Zaslav. “Do we want to motivate people to be there? There are a lot of companies that have a business where most people are there during the year.”
Regarding HBO’s finances, he said “I don’t know if I’ve ever seen anything like it,” explaining that HBO spent $2.5 billion in 2019 to raise $2.5 billion. dollars in profit, while in 2021 it spent a whopping $7 billion, then saw a loss of $3 billion. While discussing the loss, Zaslav pointed out that “all the movies that come directly to the stream are thrown right on top” of HBO Max.
The company has initiated cost-cutting measures, including large amount of content removed from HBO Max. Management has raised the possibility of selling some of this content to other streaming services, as well as selling non-exclusive rights to the original content, which Zaslav says “wasn’t seen or we don’t think anyone sign up for this.”
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