Kannan Venkat

Kannan Venkat asked about the rationale behind Warner Bros. Discovery's strategy of launching separate streaming apps for genres like CNN and TNT Sports, questioning if this reverses the industry trend of consolidation and its implications for operating costs versus licensing. He also inquired about the linear side, noting lower affiliate increases and higher subscriber decline rates compared to peers, asking if this indicates a reset and future benefits.

Answer

David Zaslav, CEO, explained the vision for the CNN streaming product as a compelling standalone global news offering, emphasizing its importance for trusted information. Gunnar Wiedenfels, CFO, clarified that these apps leverage a common product platform with limited incremental operating costs, and offering sports as a buy-through has shown greater commercial success. Wiedenfels also acknowledged a transition period for linear distribution in 2025 due to greater flexibility in renewals, expecting a better trajectory in the near to midterm.

Kannan Venkat inquired about the strategy behind launching separate streaming apps like CNN and TNT Sports, questioning if this reverses the industry trend of consolidation and its implications for operating costs. He also asked about the company's linear distribution decline rates, noting lower affiliate increases and higher subscriber declines compared to peers, and whether this indicates a strategic reset for future benefits.

Answer

CEO David Zaslav explained the rationale for the CNN streaming app, emphasizing its compelling standalone global news offering and potential for bundling. CFO Gunnar Wiedenfels clarified that separate apps like CNN and TNT Sports leverage a shared product platform, minimizing incremental operating costs, and that offering sports as a buy-through has proven more commercially successful. He also addressed linear distribution, noting that 2025 is a transition period with flexible renewals, anticipating an improved trajectory in the near to midterm.