Warner Bros. Q1 Streaming, Studios Boosts Offset by Paramount Items
Variety • • general
Key Points:
- Warner Bros. Discovery reported a first quarter loss due to a large financial obligation related to its dealings with Paramount, despite strong performance in streaming and studio operations.
- The company must keep $2.8 billion in reserve following the termination of a previous acquisition deal with Netflix, with Paramount paying this fee on Warner's behalf under refundable conditions.
- Overall revenue declined by 3%, largely due to an 8% drop in advertising revenue caused by the absence of NBA games after Warner cut ties with the league over fees.
- Streaming revenue increased 7% to nearly $2.9 billion, with notable growth in distribution fees and ad revenue, while production studio revenue rose 31% to about $3.13 billion.
- Traditional TV operations continued to decline, with TV revenue falling 9%, ad revenue down 12%, and U.S. TV audiences decreasing by 8% as consumers shift toward streaming platforms.
