warner bros discovery (WBDMore – Free Report) recently announced that HBO Max has canceled the reboot of . gossip girl After streaming two seasons.
The July 2021 reboot’s first season set a record as the most-watched opening weekend of an original series on HBO Max at the time. However, the second season failed to live up to viewers’ expectations. Per Deadline earned a better critic score with his Rotten Tomatoes rating of 100% versus Season 1’s 69%.
poor performance of gossip girl Reboot compared to the original series above next media (NXST – Free Report) CW Network caused HBO to go out of business. This comes as another cost saving HBO made on its content slate after canceling about 36 titles from the service last year. Generations, Infinity Train, The 12 Dates of Christmas When Sesame street.
This cost reduction is beneficial to the company as it will help reduce its losses and reduce its large debt, which currently stands at $50 billion.
Streaming Division to Support Warner Bros. Discovery
Warner Bros. Discovery’s streaming platforms, including HBO, HBO Max and Discovery+, which will soon be merged into one streaming platform, will add 2.8 million net global subscribers in the third quarter of fiscal year 2022, bringing the total to 94.9 million became. , up 3% from the previous quarter.
Despite seeing subscriber growth, it fell short of Wall Street’s expectations of a net subscriber gain of 3.27 million, according to TechCrunch.
This is largely due to the compromises made in the movie and show pipeline to keep costs down that keep viewers away from streaming platforms.
Warner Bros. Discovery’s shares are down 56% year-over-year against Zack’s consumer discretionary sector, which fell 25.1% over the same time frame.
However, the company is focused on rebuilding its streaming division and has an exciting schedule for next year as it tries to win back its audience and earn their trust.
Multiple classic titles such as American Hustle, Ghostbusters, John Wick and Matilda have already hit streaming platforms in January. Debuts such as The Climb and his Velma have also been released.
The highly anticipated upcoming shows include veteran favorites such as White House Plumbers, The Idol, Succession and Barry.
In addition to this, HBO Max recently announced an increase in the price of its ad-free subscription in the US from $1 to $15.99 per month. This will also strengthen the company’s top line and drive growth.
Zack Rank and Stocks to Consider
Warner Bros. Discovery currently holds Zacks Rank #3 (Hold).
A complete list of today’s #1 (Strong Buy) Zachs Stocks can be found here.
Some better-ranked stocks in the same sector are Manchester United (Manu – free report) and liberty global (LBTYA – Free report), each boasting Zack Rank #1 (strong buy).
Manchester United shares have risen 64.4% over the past year. Zach’s consensus expected return is pegged at a loss of 1 cent, which has been constant for the past 30 days.
Liberty Global’s stock has fallen 24.5% over the past year. The company’s earnings are estimated at 49 cents per his share.