[1andrew1]

Wonder if this means that the HBO-Sky deal will be renewed post 2025?

Warner Bros Discovery calls time on ‘spend, spend, spend’ streaming mode

CEO David Zaslav says recently merged group will adopt ‘sensible’ approach as it reports $3.4bn quarterly loss

Warner Bros Discovery has called time on Hollywood’s all-in bet on streaming, as it renounced a growth-at-any-cost strategy in favour of a more traditional approach to selling its films and shows for “maximum value”.

The strategy shift came as the group warned of a difficult economic outlook and reported a net loss of $3.4bn in its first full quarter as a merged company, highlighting the integration challenges facing the sprawling media group.

Warner’s executive team outlined plans to establish a combined streaming service bringing together HBO Max and Discovery Plus, but pointedly described the platform as only “one part” of a broader approach.

Mocking the “spend, spend, spend and charge very little” approach taken in recent years as media groups fixated on streaming growth, Zaslav said Warner would in future adopt a “more sensible” approach to budgets and pricing.

“It was a reaction to the capital markets — let’s go ahead and collapse businesses and overspend on content,” he said, referring to how media groups sacrificed traditional licensing and theatrical revenues to feed streaming platforms with exclusive movies and shows. “We think we can build a great streaming business that can touch everyone but we are not collapsing businesses into it.”

https://www.ft.com/content/3a360d69-...c-265c253230d1