☀️WBD Q2: WTF Just Happened 🫣
APPLE shifts Clooney & Pitt from theaters / ENDEAVOR asset sale begins / TKO boosts 2024 projections
Mornin! This is Sean McNulty (connect with me on LinkedIn here if ya like), and here’s the Hollywood + Media news to know on THURSDAY, August 8, 2024.
Where the parent company of IHOP and APPLEBEE’S said it attracted more customers with $100k+ incomes in Q2 (hint: they’re the ones who pay in $100 bills).
It also saw increased demand for “value menu” items from all customers as well — including something called “unlimited riblets” that I’m sure Richard could explain to me.
Don’t worry, I’m sure these folks won’t think twice about paying more for streaming services, the NBA & local sports in the year ahead — I mean as we all know, unlimited riblets are just hard to resist. . .
AND: Add A Different World to our #2024RemakeBonanza! list, as NETFLIX has put a Full House-ish continuation of the series in development, centering on the daughter of Whitley & Dwayne’s characters.
D’OH: More bad news for old legacy media — UNITED is shutting down Hemispheres magazine! Is nothing sacred?
YEAH: NYC now has more than 1M sq ft. of empty retail space that only used to house pharmacies. Don’t worry, things are goin’ great in NYC real estate.
EXHIBIT 143: On how Hollywood should really be putting more focus on Latino audiences. They made up 91% of the population growth in the 3-year period, post-Covid.
WAKEUP BOX OFFICE POLL
It’s always nice when our sense of Hollywood’s self-importance and the title of the weekend’s big new movie debut coincide, with It Ends With Us from SONY.
Sentiment is all over the place, from about $25M on the low side, to up to $40M+ from the optimists, based on huge pre-sales.
Cable TV core cracks at WBD in Q2 2024
Well. That Q2 report was something. I’ll start with these two observations:
Including “Adult Swim Q2 primetime ratings grew 14% year-over-year” as a top-line accomplishment for a quarter at a major Hollywood studio in the 2024 media business says a lot about the state of your business.
Writing off $9.1 Billion in a quarter, and not even directly addressing that on your earnings call until . . . minute 17 of that earnings call, says a lot about the state of company leadership. I know the boat’s sinking, but look at the embroidery on the curtains!
So, let’s look at:
The state of the linear TV and streaming ad markets and #cordcutting decline
Why #SurviveTil26 appears to be the mantra at WBD
The new thinking around gaming
Why that +3.6M Q2 streaming subscriber growth isn’t as healthy as it looks — and some key 💰 comps to note
How & why did we get to this low point in the first place . . . and what’s lacking about the messaging that came forth from management yesterday
Now, unlike the approach taken on the earnings call — let’s first look at what excising $9.1B from WBD’s value is all about.