Warner Bros. Discovery CEO David Zaslav recently delivered a scathing assessment of the current television landscape, describing it as a 'terrible consumer experience.' Speaking at the Goldman Sachs Communacopia + Technology Conference, Zaslav contrasted the industry's struggles with the success of HBO Max, attributing its global growth to its high-quality content and a fragmented market. He highlighted the overwhelming number of streaming services available, causing consumer confusion and frustration in navigating the plethora of options. This, he argued, is a significant challenge for the industry as a whole.
Zaslav's comments weren't solely critical. He expressed confidence in HBO Max's position in the competitive streaming market, projecting it will reach 150 million or more homes next year. This growth trajectory, he believes, justifies a price increase, stating that HBO Max is currently underpriced. The company plans to take a measured approach to this increase, leveraging the strong reputation and quality of its content.
Another area Zaslav addressed was password sharing. While acknowledging the complexities involved, he confirmed that Warner Bros. Discovery will soon begin to crack down on this practice, once HBO Max solidifies its user base and further establishes its premium brand identity. This strategic approach highlights the company's focus on maximizing revenue from its existing subscribers.
Looking ahead, Zaslav revealed details of Warner Bros. Discovery's restructuring plan, involving a split into two separate companies by April 2026. He will lead 'Warner Bros.,' encompassing film and TV studios, DC Studios, HBO and HBO Max, and TCM. Gunnar Wiedenfels, the current CFO, will head 'Discovery,' encompassing the former Discovery and Turner linear channels and Discovery+, and will also assume responsibility for the majority of the company's debt. This strategic move aims to streamline operations and enhance operational efficiency within the organization. The restructuring is a direct result of the April 2022 merger between Discovery, Inc., and AT&T's WarnerMedia, initiated by Zaslav himself.
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Originally published at: https://www.hollywoodreporter.com/business/business-news/david-zaslav-tv-terrible-hbo-max-password-sharing-crackdown-1236367283/
