Warner Bros. Discovery has a $ 825 million write-off on content – The Hollywood Reporter

How much content has Warner Bros. Discovery since the WarnerMedia merger just a few months ago? A value of $ 825 million.

The company revealed on Friday in a regulatory filing that it had written down the content of $ 825 million following the deal. That figure includes a $ 496 million content loss as well as a $ 329 million content development write-off.

“Content impairment and development write-offs resulted from the post-merger Global Strategic Content Review,” the company wrote in the application.

Impairment and impairment data was spread over the company’s study activities (including film and television studios), network activities (including line TV networks), and DTC activities which include streaming services such as HBO Max and Discovery +. The content impairment was for programs that were already produced or in production, and the development write-offs were for content that was still in development.

And this dramatic number probably doesn’t Bat girl or Scoob !: Haunted Vacation, two films that were to debut on the HBO Max streaming platform by this week. (These films will most likely be billed for the next quarter.) However, it would include an excerpt related to the film Lovely Twinsanother DC project for HBO Max, which was in pre-production and which was closed in May, before the end of Q2.

Filmmakers z Bat girl they were told the project would not move forward earlier this month despite being already in post-production. Sources at the company said the film was planned to be deferred for tax purposes, and the write-offs released on Friday confirm this.

The Q2 write-off likely includes a number of programs that were shut down from TBS and TNT, as well as costs for CNN +, an unfortunate streaming service that WBD shut down just weeks after its launch. The report also indicated that the company had $ 208 million in layoff costs during the quarter.

TBS and TNT have severely restricted programming since the merger, instead leaning towards sports and unscripted tariffs. TBS cut comedies Chad (which has already finished production in its season), Full frontal with Samantha Beeand Tracy Morgan The last OGwhile TNT announced an end date Snowpiercer. The development scenario in both networks was put on hold, and the company decided not to renew the SAG award agreement.

On Thursday’s earnings appeal, WBD streaming chief JB Perrette said kids and animated content for linear and streaming, direct-to-streaming movies, and shows for TBS and TNT were most responsible for recalibrating content, “in particular, content released on [Turner] shows which did not have a pathway to generate sufficient ratings or increase monetization potential ”.

WBD, led by CEO David Zaslav and CFO Gunnar Wiedenfels, said it was looking for around $ 3 billion in savings over the next few years as a result of the merger. These savings will come in the form of a combination of technology systems and offices, as well as layoffs, although rethinking how and where you spend your money on content is of course part of the plan.

“Having content that really appeals to people is much more important than having a lot of content,” Zaslav told the company on Thursday about the earnings.

“We will continue to make healthy investments in content, but with the combination of these two content portfolios, we see smart opportunities to do so at a much more balanced pace than in previous plans,” added Perrette. “These are tough decisions, but we are committed to adhering to the framework that guides our content investment in order to obtain maximum return.”

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