Warner Bros. Discovery is writing a lot more about content and development than previously thought.
In a filing Wednesday, WBD said it now expects to take $2.8 billion to $3.5 billion in write-offs and shortfalls related to content and development costs, as initially proposed in October 2 billion to $2.5 billion. This reflects an additional charge of $800 million to $1 billion.
WBD now says its total restructuring and impairment charges related to the WarnerMedia-Discovery merger will be between $4.1 billion and $5.3 billion, reflecting higher content write-downs.
The filing did not specifically explain what the aggravated deficiencies were related to; However, in recent weeks the company has canceled or removed several titles from its service, including love life, Minx, Westworld and NeurosWhile developing projects such as Patty Jenkins Wonder Woman 3 James Gunn and Peter Saffron were fired while creating the new DC film universe.
The company said Wednesday that a number of HBO and HBO Max programs will be packaged into a new bundle to be sold to third-party free, ad-supported streaming services. These shows include: Westworld and Neurosas well as FBoy Island, legendary, The Time Traveler’s Wife and Raised by wolves.
“We are incredibly proud Westworld and the remarkable work of our cast and crew,” series creators Jonathan Nolan and Lisa Joy said in a statement. “We’re thrilled to have the opportunity to welcome a whole new audience to our show.”
Meanwhile, a number of other shows will come out of the HBO Max platform, and the company is “talking with studio partners about opportunities to further expand access to shows, including but not limited to third-party FAST platforms.” The series is not limited to licensing.”
These shows include: The Chronicles of Gordita, love life, Minx and Made for love.
The company says its restoration cost estimates are unchanged at this time, although as it said in October, those numbers could be adjusted as the company goes into details.
Since completing the merger in the spring, WBD has aggressively sought to reduce costs, both through restructuring, operational savings (such as consolidating its physical footprint and reducing the number of contractors and third-party software providers it uses). uses), as well as in content. writings
The company has the ability to receive tax benefits on the writing, although in some cases it can, depending on the status of the project, resell some of the content elsewhere.