David Zaslav, CEO of Warner Bros. Discovery, spoke Wednesday at the Goldman Sachs Communacopia and Technology conference, discussing the need for the writers and actors' strikes to end, as the media industry is going through a transition. On the issue, he mentioned that assuming these strikes last until the end of the year, the company's earnings could decline by as much as $500 million. This week, Warner Bros. Discovery adjusted its forecast accordingly.
The media industry is undergoing a period of transition from streaming to traditional TV, and Warner Bros. Discovery CEO David Zaslav stressed the need to end the writers and actors' strikes on Wednesday. "We're a content company. We're a storytelling company. And we need to do everything we can to get people back to work," said Zaslav at Goldman Sachs' Communacopia and Technology conference. He went on to emphasize the importance of providing fair compensation for the workers involved.
In response to the strikes having the potential to extend past September, Warner Bros. Discovery adjusted their full-year outlook by forecasting a $300-$500 million decline in their adjusted earnings before interest, taxes, depreciation and amortization to a range of $10.5-$11 billion. Zaslav has been part of the negotiations with the Writers Guild of America and the actors, both of whom are now in the midst of over 100 days of striking.
The impacts of the work stoppage have been felt across the industry, including the loss of Hollywood productions, a tough advertising market and a focus on bulking up the streaming business. The company has concentrated on shoring up its free cash flow and reducing its $47.8 billion of debt, which is a result of their 2022 merger with Discovery.
In the near future, updates regarding Warner Bros. Discovery's attempts to add sports to the Max streaming service will be available. Furthermore, in September, Max subscribers can access 200 episodes of series from AMC Networks as well as a 24/7 live news hub from CNN, both being offered free for the next two months.
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