Warner Bros. Discovery described 2023 as the year to relaunch and rebuild the company after several layoffs, tax write-offs, and company restructuring, following the acquisition of Warner Media last April. According to the company, they have come up with great solutions, as they face a new chapter.
A Warner Media logo is displayed in Manhattan, New York on May 17, 2021. - AT&T said May 17, 2021 it was spinning off its WarnerMedia unit and combining it with Discovery, creating an independent firm that could take on industry leaders such as Netflix in the fast-growing streaming sector. The deal, which signals the telecom giant's retreat from ambitions to be a player in the entertainment world, carves out the AT&T division which includes HBO, Warner Bros studios and CNN. (Photo by Ed JONES / AFP) (Photo by ED JONES/AFP via Getty Images)
ED JONES/AFP via Getty Images
(Photo : ED JONES/AFP via Getty Images) A Warner Media logo is displayed in Manhattan, New York on May 17, 2021.
Year of Relaunching and Building
Warner Bros Discover Chief Financial Officer Gunnar Widenfels spoke at the annual event of Citibank's Communications, Media & Entertainment Conference. The Verge reported that he stated through this new year, a new chapter begins for the company.
During 2022 when they conducted restructuring in the company, such as layoffs and content write-offs, Widenfels said that it needed to be done to move forward as they used that year to leave the purchase accounting and strategy changes behind them.
Although this took a lot of their efforts and time, the outcome of it was sure and proper to the point it gave them enough time on coming up with great solutions to several setbacks last year. "I think the team has laid a great foundation, and I'm really excited about the growth from here," he added.
The company canceled shows and removed titles in the past year, which frustrated a lot of fans as some of it were big names. This includes the much-criticized decision on canceling HBO Max's Batgirl.
These decisions were described by Weidenfels as a 'reflection of an industry that went overboard, that went on a spending frenzy.' He added that the company came from an irrational time of overspending, despite having a limited focus on return on investment.
According to The Hollywood Reporter, other companies will follow in WBD's footsteps in how it approaches content and problems. He said that removing titles may be the only option for other competitors in the space, with an increase in pricing to pursue profitability over each.
He then stated, "We have every intention to continue spending, content is the lifeblood of this company. It's obviously a hit-driven business, you win some, you lose some. But if you look at the creative lineup that David Zaslav has been able to assemble, this is a first flight lineup of creative talent."
For pricing and profitability, Weidenfels believed that these kinds of products were priced way too low, which can lead to future hikes. By looking at the market, a lot of companies have started to bring up their own prices gradually.
Employees that were affected by the layoffs came from different departments including the reality unit, casting, and content acquisition teams.
Chief Executive Officer David Zaslav also clarified that despite having several problems, he addressed to his employees that the company is not for sale. The company was described by the CEO as having the strongest hand in the industry and having what it takes to be the biggest entertainment streaming company in the world.
