Warner Bros. Discovery Splits In Two, Stranding Streaming Subscribers

Contents

Summary

Warner Bros. Discovery split marks the end of an era after 3 tumultuous years.
The split results in two distinct entities: Streaming & Studios and Global Networks, similar to their predecessors.
Content changes are coming or already here for streaming customers, as considerable Discovery+ content has already left the HBO Max stable.

Most animal species that reproduce asexually create genetically identical copies — essentially clones. But one, the desert grassland whiptail lizard (Aspidoscelis uniparens) of the Southeastern US and Northern Mexico, produces offspring with extremely similar, but not quite identical genes.

Warner Bros. Discovery is, in a way, like the whiptail lizard. Just three years after the original IP outfit and global content delivery conglomerate (Warner Bros. and Discovery, Inc.) joined forces in an infamous merge, the not-so-unthinkable is happening. WBD is breaking apart, and the offspring look awfully similar — but not exactly identical — to the two corporations it was made from.

Snip, snap, snip, snap

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Many of these shows are no longer available on HBO Max.

The Warner brand has a storied history of merging and splitting. Founded in 1972, Warner Communications merged with Time Inc. to become Time Warner in 1990. Following a 2018 AT&T acquisition and rebranding to WarnerMedia, 2022 saw the media giant merge with Discovery in a much-talked-about shakeup. By many measures, the WBD merger was not particularly successful. To analysts, the recently announced split was relatively predictable. As recently as December, The Wall Street Journal’s Joe Flint received a leaked memo mandating WBD’s restructuring into two separate entities.

Here’s where that lizard’s unique form of parthenogenesis comes into play. One half of the breakup, called Streaming & Studios, will hold the company’s original works, including its movie and TV production outfits (including DC Comics IP) as well as the HBO Max streaming service. The other, Global Networks, will cover everything else: networks including TNT and TBS, Warner’s various cable channels, and additional international holdings. Those smell a lot like the companies formerly known as WarnerMedia and Discovery, Inc., respectively. But there are clear differences.

In particular, third-party broadcasts through outlets like CNN, Turner Sports, Cartoon Network, and Adult Swim will no longer be associated with Warner properties such as the newly re-re-named HBO Max. So, what does that mean for the thousands of hours of Discovery+ content on the popular streaming service? Naturally, much has already been, or is slated to be, removed now and in the coming months — not that WBD is very forthcoming on those removals.

Source: Warner Bros. Discovery

Moving forward, Discovery+ appears to be the streaming service for your favorite episodes from channels like TLC and the Food Network. HBO Max seems poised to return somewhat to the HBO Now model, which focused almost exclusively on in-house HBO content. Customers unhappy about the reduced choice always have the option to cancel their subscriptions, of course, but don’t hold your breath waiting for HBO Max prices to drop after it loses so much content. Luckily, popular favorites such as Friends, The Big Bang Theory, and ER appear to be staying put, at least in the US.

WBD’s mountain of over $37 billion in debt adds another interesting wrinkle. According to early reports, the Global Networks entity will inherit most of that, in addition to a 20% holding in the Streaming & Studios company. That 20% stake is designed to ultimately pay off some or all of the billions WBD owes.

The debt disappearing, of course, relies on how well Warner’s Streaming & Studios IP fares in the coming years. If HBO continues to refocus on hard-hitting content in its classic style, and DC cinematic universe production continues to bring fans out in droves, it may someday succeed. And all because WBD CEO David Zaslav took a page from the book of an all-female, asexually reproducing species of lizard.