Warner Bros. Discovery Plans Fresh Cost Cuts, Max Price Hike

-- Warner Bros. Discovery Inc. Chief Executive Officer David Zaslav has ordered his lieutenants to find additional opportunities for cost-cutting in order to hit financial targets for the next couple years, people with knowledge of the matter said.

“The company is focused on the long-term growth of the business overall, including Max, which has been a priority across WBD to expand the original content offerings for our streaming audiences including news originals from CNN, NCAA Men’s March Madness and NBA playoffs from sports, local language content from international, and a new distribution deal with A24.”

The accelerating decline of cable TV has forced major Hollywood companies, including Warner Bros., Paramount Global and Walt Disney Co. to slash costs after years of investment in streaming services. Those services have attracted millions of subscribers but also cost billions of dollars to build out and program.

Zaslav will soon have to decide whether to outbid Comcast Corp. to keep TV rights to the NBA, a huge source of viewers for the company’s TNT network. The cost of NBA rights is expected to double in this next package to about $2.5 billion annually. Disney and Warner Bros. Discovery are breaking ground in streaming with a bundled offering featuring Disney+, Hulu and Max. The companies are aiming to launch the bundle this summer. The exact launch date and the price point have not yet been announced, but plans call for both ad-free and ad-supported versions to be available. The …The Burbank media giant is seeing big strides in its streaming business, which includes Disney+ and Hulu, as its linear TV business continues to face losses.

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