Removal of many HBO Max Originals sends Warner Bros. stock prices plummeting Discovery despite House of the Dragon’s record premiere.
As the HBO Max content purge continues with the streaming service pulling much of its original content, Warner Bros. Newly merged Discovery is in free fall.
Following numerous cancellations with projects developed as bat girl and Scoob 2as well as the removal of 36 beloved anime series like infinite trainthe stock price of Warner Bros. Discovery has been falling since August 4. the value has fallen nearly 50% since the start of the year.
On a slightly more positive note for the company, Warner Bros. Discovery also saw a 1.4% increase in share price after the premiere of the new game of thrones prequel series House of the Dragon. The HBO Original holds the record for most-watched premiere of 2022 and beat the release of stranger things Season 4 in viewership metrics, though high server traffic has caused HBO Max to crash for some users. Stock analysts are divided on the viability of investing in the company. Some still consider the shares of Warner Bros. Discovery stocks are worth buying, but others, namely short sellers, sell their stocks as soon as possible.
The controversial moves of Warner Bros. Discovery
Share price swing comes with post-merger company overhaul following major company-wide layoffs and $825 million reduction in content losses . The company’s long-term plan is to merge HBO Max and Discovery+ into one unified streaming service offering content that appeals to a wider range of demographics. HBO Max is still able to attract viewers with original content like Dragon Housebut controversial decisions like the removal of 200 episodes of Sesame Street give potential investors pause.
The studio is always actively looking for alternative ways to generate revenue with its original content. HBO Max recently revealed that six of its original animated projects (including the highly anticipated Batman: Caped Crusader), while not canceled, will no longer appear on the streaming service. They will instead be licensed to other broadcasters as part of the Warner Bros. Chairman and CEO’s new content distribution strategy. Discovery, David Zaslav. The effect these far-reaching changes will have on the company’s stock price has yet to be seen.
Dragon House airs Sundays on HBO and can stream same day on HBO Max.
Source: Google Finance, Schaeffer Investment Research