Ampere recently release a report stating Warner Bros. Discovery is on track to overtake Comcast as the leading investor for original content. Warner Bros. Discovery is planning on spending at least $9.5 billion on original content for 2023. This figure places the company towards the top of the list for content investments, second only to Disney.
During the first quarter of 2023 alone, Warner Bros. Discovery reported a net loss of $1.1 billion. On the plus side, its streaming division had a total profit of $50 million. As of June 2nd, 2023, Warner Bros. Discovery reported a net worth of $28.6 billion.
Warner Bros. Discovery is refocusing its streaming strategy by releasing Max (formerly known as HBO Max) and Discovery+ to a new streaming app encompassing content from all three services. Max is currently available in the U.S. with plans to branch out internationally by 2024. The app costs between $9.99 to $19.99 depending on the tiered plan you chose.
Ampere predicts 2023 will result in an overall decline in content investments, down to a mere 8 percent growth compared to the 25 percent growth rate seen in 2022. Already, Warner Bros. Discovery has canceled The Nevers and Westworld amongst others. International productions have been paused for the time being, which went into effect last year.
Earlier this year, MoffettNathanson data predicted Warner Bros. Discovery would decrease spending for content down to $20 billion. Last year, the company spent over $21.5 billion on content. That same year, Warner Bros. Discovery went on a cost cutting slashing spree to reduce operational costs and other expenses to improve profit margins.
With the writers’ strike still ongoing, spending for new content is on hold as no new content will be created – or even pitched – until negotiations are resolved. Warner Bros. Discovery may adjust its sails as the year progresses, so check back with Cord Cutters News for more information.