The Warner Bros. Thread | Will NOT merge with Paramount...capitalism is still terrible

[Porthos]

Not confirmed, but when this news drops (if it does)

 

 

reaction ain't gonna be pretty on social media

 

(not that any of the reaction is pretty so far)

Edited August 3, 2022 by Porthos

[Lucas]

oh fuck this so hard

[TwoMisfits]

In defense of the company, they may not have predicted last December that the Fed would finally get on a rates increase run, making their debt more and more unstainable as they try to roll it over short term.  It could be they didn't think they'd need to be this drastic (maybe they thought CNN+ cancellation would cover it) and then they realized they needed to go all in to avoid bankruptcy.  

 

I mean, they aren't just axing shows/movies/content - they have axed whole divisions of people and look like that was only the beginning - and that is a way to get better fast on debt - as is selling rights to content for immediate income streams (thus, I think the old DC stuff and the surviving/still to be released DC stuff and Netflix might become buddies very soon)...

[XXR & Friends]

This is von Clausewitz shit. Total fucking war.

 

Spoiler

Props if you know the film 

 

[dudalb]

BTW I loved Peacemaker and would hate to see it cancelled. But it is not bringing in enough ratings to justify it being renewed, I can see why it would be cancelled.

[Potiki]

1 hour ago, stephanos13 said:

 

Please explain to me how streaming is the future.

 

What company has a successful streaming service that makes money for them?

 

- Netflix stock is at the same as it was 4 and a half years ago.

- Disney+ -> “The [Disney] streaming segment overall lost $887 million in the most recent quarter, and its losses have totaled more than $6 billion since the launch of Disney+.”

- Peacock $467 million losses.

- Paramount -> 

- Apple and Amazon -> No comment, they are just dumping money.

 

Everything you listed is in the past and an investment needs to be made for future profitability, much like how a film in production will cost money until it is released and has a chance to make that money back plus more. 

 

Breaking down your points:

 

Netflix used to be included as a tech stock in FAANG as was overvalued as such, now it has been revalued as a media stock. That said if you take the market caps of WBD and Paramount then double them that is pretty close to what Netflix market cap is right now without any cable, broadcast, theatrical, theme parks and limited merchandise. 

 

Disney has been expanding into new countries and that is costly as they have to localise the app and shows/movies, have a big marketing spend, process local payments, spend on local programming and all without getting anything back until they launch. Disney has also bested expectations and has ramped up their spend fairly quickly (particularly with ESPN+) but so far that has been paying off and they will likely be very profitable 5 years from now from streaming. 

 

Peacock has been a massive failure. NBCUniversal has been halfhearted in the attempt to move into streaming probably because their parent company is Comcast. 

 

Paramount has continued to license shows and movies and still had an impressive amount of streaming growth, the reason Q1 22 was down on Q1 21 was due in part due the lack of a Super Bowl and due the fact they made a lot more money selling movies to streaming last year than showing them theatrically as you can see by the revenue and profit mix below 

 

source: https://ir.paramount.com/static-files/4eca8381-53d2-4975-8a42-22620ca94218

 

Apple and Amazon do not break out streaming as you mentioned so no further analysis there. 

Edited August 3, 2022 by Potiki

[cax16]

I know a great way that they can get their debt under control fast, sell DC to Apple please. 

[robertman2]

1 minute ago, cax16 said:

I know a great way that they can get their debt under control fast, sell DC to Apple please. 

that'd fuck the dc games though

[dudalb]

1 minute ago, Ecks Ecks Are said:

This is von Clausewitz shit. Total fucking war.

 

  Reveal hidden contents

Props if you know the film 

 

Pretty much, yeah.

Warners is in crisis, and until the debt starts getting paid down, the crisis will continue.

Studios are prone to these cirsis because, if you did not know, studios finance their movies primarily through bank loans. Been that way since the beginning of Hollywood. In the 30's, the Bank Of America  was one of the most powerful forces in hollywood because Several major studios depending on them for finaincing.

[TwoMisfits]

1 minute ago, cax16 said:

I know a great way that they can get their debt under control fast, sell DC to Apple please. 

DC's way too valuable.  I assume a Netflix deal would be like the deal Disney did of old with Netflix - the "rental" of material.  WB keeps the rights and sells them to Netflix for X period of time in a non-exclusive deal (so WB can still also show them)...

 

Netflix needs a big get...and they don't mind that kinda deal (or they didn't use to)...

 

I mean, Apple needs that kind of get badly, too...but again, they'd want to buy and WB won't sell DC...they see what the Marvel brand has been worth to Disney...

[cax16]

2 minutes ago, RobrtmanAStarWarsReference said:

that'd fuck the dc games though

Apple can buy that as well. Honestly right now I have no faith in WBD doing anything right. 

[cax16]

Just now, TwoMisfits said:

DC's way too valuable.  I assume a Netflix deal would be like the deal Disney did of old with Netflix - the "rental" of material.  WB keeps the rights and sells them to Netflix for X period of time in a non-exclusive deal (so WB can still also show them)...

 

Netflix needs a big get...and they don't mind that kinda deal (or they didn't use to)...

 

I mean, Apple needs that kind of get badly, too...but again, they'd want to buy and WB won't sell DC...they see what the Marvel brand has been worth to Disney...

I know, you’re right, I just don’t like what I’ve seen from Zaslav so far.

[dudalb]

7 minutes ago, TwoMisfits said:

In defense of the company, they may not have predicted last December that the Fed would finally get on a rates increase run, making their debt more and more unstainable as they try to roll it over short term.  It could be they didn't think they'd need to be this drastic (maybe they thought CNN+ cancellation would cover it) and then they realized they needed to go all in to avoid bankruptcy.  

 

I mean, they aren't just axing shows/movies/content - they have axed whole divisions of people and look like that was only the beginning - and that is a way to get better fast on debt - as is selling rights to content for immediate income streams (thus, I think the old DC stuff and the surviving/still to be released DC stuff and Netflix might become buddies very soon)...

Hey guy, you get this.

Waners in in a debt crisis, and  bad things happen when thaat happens.

I am not defending Zaslev every move..some of them even from a debt reductin point of view seem questionable, but if want to point fingers let's point some at previous adminsitrations whose overspending and bad finiancial management got WB into this mess.

[belblazer]

I still can't believe in what is happening lmao

 

DC fans do not deserve this.

[XXR & Friends]

1 hour ago, stephanos13 said:

 

Please explain to me how streaming is the future.

 

What company has a successful streaming service that makes money for them?

 

- Netflix stock is at the same as it was 4 and a half years ago.

- Disney+ -> “The [Disney] streaming segment overall lost $887 million in the most recent quarter, and its losses have totaled more than $6 billion since the launch of Disney+.”

- Peacock $467 million losses.

- Paramount -> Free cash flow was only $481 million last year, a decline from almost $1.9 billion in 2020. The overall shift to streaming is “permanently depressing the profitability of the industry,” warned one media agency vet

- Apple and Amazon -> No comment, they are just dumping money.

Only one of these is fully established at this point and that’s Netflix. While their stock price has slid, their net income in 2022 will be over $4.5 billion so they make plenty of money.

 

Building a service like this takes 5-10 years of investment across the board, before profits are turned.

Edited August 3, 2022 by Ecks Ecks Are

[dudalb]

Just now, cax16 said:

I know, you’re right, I just don’t like what I’ve seen from Zaslav so far.

Look at it from a business point of view rather then a fan point of view. COsts hav e to be cut, and the products that are not pulling theri weight are the first to go.

Welcome to the real world. Studios and the movies are subject to the same economic laws as everybody else.

 

[MrHardapple]

So how does this effect the chances of Lethal Weapon 5 being made?

[Ronin46]

1 minute ago, MrHardapple said:

So how does this effect the chances of Lethal Weapon 5 being made?

 

Gone from 0 to zero.

[Eric the Minion]

 

[cax16]

1 minute ago, dudalb said:

Look at it from a business point of view rather then a fan point of view. COsts hav e to be cut, and the products that are not pulling theri weight are the first to go.

Welcome to the real world. Studios and the movies are subject to the same economic laws as everybody else.

 

I don’t know if you mean to come off the way you do but all of your posts are super condescending. We all know and understand this is a business. I have run businesses my whole adult life.

 

I will say this again, I don’t think he’s making good business decisions but that’s on him, I don’t care cause I have no control or money invested in any of this. Will I be disappointed if something gets canceled I like? Sure, but I’ll be over it in a few hours and move on with my life. This is nothing new, just a different white rich dude in charge.