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Right. But take, for example, Warner Bros. Discovery. $40 billion in revenue yearly, $50+ billion in debt needing servicing, annual gross profit $13 billion, M
by gjsman-1000 3y ago
Right. But take, for example, Warner Bros. Discovery.
$40 billion in revenue yearly, $50+ billion in debt needing servicing, annual gross profit $13 billion, Market cap $32 billion. They aren't exactly the world's healthiest company.
What's the plan? "World-class" Cost-cutting and price hikes, everywhere. Even if it's multiple 95%-finished movies (Scoob! Holiday Haunt, Batgirl), send them to the shredder for the tax write-off if their success is uncertain. Taking risks or releasing anything that possibly won't be a hit, is not affordable at the moment.
What about Disney? Disney+ is losing $4 billion every year, and now has a lawsuit ongoing about whether the projections of profitability were ever reasonable. And it has also become apparent to investors that the content deluge and the expectations it set has caused massive damage to Marvel, as well as Pixar's Box Office profits. Pixar's Elemental, for example, just had the second-worst box office opening after the original Toy Story... except that Toy Story opened with 28 years less inflation, and on a Wednesday. The good news for Disney is that Elemental has had quite a recovery, even if it almost certainly won't break-even.
Now you've got this quibble with the Writer's Guild; at the same time that making new content to prop up streaming numbers has never been under more scrutiny, and the pocketbook has not been such a concern in years. You can afford to take a break - heck, you might have even been considering taking a break anyway; and by taking a break you can theoretically win a better deal with the Writers to save even more money in the future.