After witnessing the pink-hued triumph of "Barbie" last year in collaboration with Warner Bros., CEO David Zaslav of Warner Bros. Discovery delivered a spirited discourse on Thursday about bolstering his studios' future endeavors for unwavering consistency. Margot Robbie's blockbuster "Barbie" shone brightly at the box office in 2023, raking in an astonishing $1.44 billion globally. However, during an analyst call on Thursday morning, Zaslav addressed the studios' robust performance, tempered by the legacy cable TV brands that grapple with the headwinds of cord-cutting and advertising hurdles.
"Our studios business has witnessed genuine highlights. Our TV studio is poised to record its most lucrative year in scripted content over the past five years," Zaslav asserted confidently. Furthermore, he exuded enthusiasm for the studio's cinematic endeavors post the recent release of "Beetlejuice Beetlejuice." "Even in an industry characterized by hits and misses, we must acknowledge the imperative for our studios to deliver greater consistency," Zaslav added thoughtfully. He also didn't shy away from discussing the underperforming gaming unit. "The gaming business hasn't been picture-perfect," Zaslav conceded to analysts. "Yet, I believe we now have a golden opportunity to stabilize the gaming business with our focused approach."
Turning back to the cinematic landscape, WBD's studios business took a significant blow from Todd Phillips' sequel "Joker: Folie à Deux," which bombed during its box office debut. "Over the past two years, we've been diligently driving changes within our motion picture studio to enhance greenlight governance and franchise management, which remain our focal points for the future. This is a business where translating operational shifts into tangible results takes time, but I firmly believe we'll witness these strategic pivots yielding improved outcomes in the years ahead," Zaslav stated.
He then extolled the success of HBO and DC's Batman spin-off "The Penguin." "Stories like 'The Penguin' that mold culture, ignite conversations, and become must-watch viewing experiences, invariably triumph over time," Zaslav emphasized. CFO Gunnar Wiedenfels of WBD echoed Zaslav's optimism about the studios business bouncing back, especially when asked about potentially separating the studios and streaming units. "I believe we have a highly sustainable, long-term growth narrative unfolding for this studio. This is particularly true when it comes to content. It's an area where we daily witness the benefits of running this company on an integrated basis… We've made immense progress. We're still in the nascent stages, so we're undoubtedly reaping rewards from operating WBD as one cohesive entity," he told analysts.
