After seeing pink last year with Barbie, Warner Bros. Discovery CEO David Zaslav on Thursday talked about strengthening his studios business going forward for consistency.
Warners’ Margot Robbie blockbuster Barbie led the box office in 2023 with $1.44 billion in worldwide revenue. But a studios unit that fired on all cylinders, and yet is slowed by legacy cable TV brands facing headwinds from cord-cutting and advertising challenges, was addressed during a Thursday morning analyst call.
“There have been some real bright spots in our studios business. Our TV studio is on track to have its most profitable year in scripted content in the last five years,” Zaslav argued. And he talked up the movie side of the studio after the recent release of Beetlejuice Beetlejuice.
“Even in an industry of hits and misses, we must acknowledge that our studios business must deliver more consistency,” Zaslav added. He also addressed an underperforming gaming unit. “It hasn’t been pretty on the gaming business,” Zaslav told analysts. “I think we have a reach chance now with a focus to have the gaming business be steadier.”
Back on the movie front, WBD’s studios business took a hit from Todd Phillips’ sequel Joker: Folie à Deux bombing in its box office debut. “For the past two years, we’ve been driving changes within our motion picture studio to improve green light governance and franchise management, which remain focal points going forward. This is a business where translating operational changes into results takes time, but I believe we’ll see those strategic shifts deliver improved outcomes in the coming years,” Zaslav said.
He then touted the success of HBO and DC’s Batman series The Penguin. “Stories like The Penguin that can shape culture, spark conversations, and become appointment viewing, always win over time,” Zaslav said.
WBD CFO Gunnar Wiedenfels echoed optimism about a bounce-back for the studios business, and as one operation, when asked about possibly separating the studios and streaming units. “I think we have a very sustainable, long term growth story ahead here for this studio. That’s especially when it comes to content. This is an area where we see the benefits of running this company on an integrated basis every day… We’ve made a ton of progress. We’re also still in the early innings, so we are definitely getting a return here from running WBD as one integrated company,” he told analysts.
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