For this presentation we looked at Warner Bros. and the changes to the business over the years. We compiled research from all economic aspects of the firm. We've included; history, competition, market share and trends, technology, revenue streams, expectations, and consumer information. The presentation is very colorful and fun. It is meant as a purely informational piece that captures the business as it is today. Thank you for viewing, and please enjoy!

1. Presented by: Dwayne Glasgow, Kenya Phillips, & Marcus Davis Jr
WARNER BROS. DISCOVERY INC.
01/15/2023

2. - Products and services available in
over 220 countries and territories and
50 languages
- One of the “Big Five” major American
fi
lm studios
- $9.8b earned in Q3 2022
- Companies include: Castle Rock
Entertainment, DC Studios, Warner
Animation Group, HBO, Discovery,
and many others
- International corporation
headquartered in New York City with
o
ffi
ces in Europe and North America
INTRODUCTION &
OVERVIEW

3. HISTORY OF MARKET
- Originally founded in 1923 by four brothers, Harry,
Albert, Sam, and Jack, the company has undergone
many changes over the years.
- Released the
fi
rst all-talking, all-color
fi
lm in 1929.
- Introduced the Looney Tunes cartoon characters in the
30s and 40s.
- Warner Bros. Television and Warner Bros. Records (now
Warner Music Group) started in 1950s.
- Merger with Time Inc. in 90s, and acquired by AT&T in
2018.
- Rebranded as Warner Bros. Discovery after AT&T merger
with Discovery, Inc. in 2022.

4. COMPETITORS

5. COMPETITION STRUCTURE
Pure
Competition
Others
28%
Disney+
11%
HBO Max
12%
Hulu
13%
Prime Video
16%
Net

6. $2.1 BILLION
ADVERTISING:
$2.7 BILLION
DISTRIBUTION:
$4.8 BILLION
- Motion Pictures
- Home Entertainment
- Television
- DC
- Consumer Products
- Live Theatre
- Studio operations
- Global kids, Young
adults, and Classics

8. CONSUMER INCOME
- Rising inflation &
increased circulation has
lowered power of dollar.
- Entertainment
considered non-essential
goods/services.
- Living expenses rising
faster than working
wages.
- Increased competition
from similar services.

9. SUBSTITUTES & COMPLIMENTS
$14.99
$19.99
$19.99
$14.99
& $6.99
A rise or fall in competitor’s prices would affect WBD strongly

10. MARKET TRENDS
- VSOD services are increasing
every year.
- Growing reach of social media
platforms, and short-form
video content.
- Screen time per day increasing
for all age groups.
- Network TV(cable) losing
market share to streamers.

11. MARKET EXPECTATIONS
- Ad-Supported tiers catch on
and expand.
- Consumers will pick one
favorite streaming service.
- Netflix & Disney+ battle for
#1 spot.
- Advertisers experiment with
new delivery medium.
- Free ad-supported services
continue increasing.

12. NO. OF BUYERS (SALES)
95MILLIONGLOBALSUBSCRIBERS
Content offering, customers’ disposable income,
marketing plan, and pricing options will all affect
number of customers.

13. ELASTICITY
Raising the price of product would negatively impact the
business. The average client would not be willing to pay more
for this service than other comparable options. Key
characteristics about the average consumer include their
awareness of other options on the market. This information
directly impacts the elasticity of the product because customers
are not willing to pay more for Warner products than they
would for Netflix. The competitors undercutting one another
play a serious role in product elasticity.

15. INPUT PRICES
Post pandemic entertainment
production is costly due to
national inflation rates. The cost
of U.S goods and services has
increased and as a direct result
input has also increased. This
results in many shows being
dropped from the platform due
to cost.

16. TECHNOLOGY
Nvidia is a World Leader in Artificial
Intelligence Computing. Much of the Warner
Bros, content is currently produced in house.
By upgrading software’s to the most
intuitively effective on the market, content
production efficiency will increase in output
thanks to AI anticipation.
This would eventually result in a decrease in
company cost for Warner Bros. AI generated
computing will allow for faster turnaround
producing content which directly responds to
market trends.

17. EXPECTATIONS
Warner Bros. Discovery Inc.
(WBD) expectations of the
market changing for its services
are beneficial. As cable continues
to struggle with its elasticity,
many consumers are turning to
traditional production company’s
looking for more cost effective,
convenient entertainment
options.
This style of consumer will continue
to increase which will result in
additional demand of the service.
Considering this, business decisions
at Warner are made with anticipation
of what’s to come next. Therefore,
Warner merged with Discovery to
create a conglomerate which the
consumer can better value.

18. ENTRY/EXIT
On average it would take a new competitor approximately 3-5
years to enter the market in the capacity of Warner Bros.
Discovery Inc. (WBD). The reason for this being that content
production is time consuming. Building a catalogue comparable
to Warner’s, would take a competitor at least a year to develop.
Furthermore, other issues such as distribution and site
development would need to be resolved for new market
competitors. Even so this is not a deterrent to competitors.

19. ESTABLISHMENT NUMBERS
Warner Bros. Discovery Inc. (WBD) headquarters
are located at: 230 Park Avenue South, Midtown
Manhattan, New York City, 10003
Warner Bros. Studios is located at:
3400 Warner Blvd., Burbank, CA
91505
- 114,000 hours of programing
- 10,000 feature films
- 2,400 television programs (120,000 individual episodes)
- 5,000-10,000 employees depending on production
- 2,000 overseas employees

20. COVID-19 IMPACT
COVID has helped to increase
sales for Warner Bros. Discovery
Inc. (WBD). When the pandemic
started many streaming services
saw a growth in sales due to stay
at home mandates. Since
transitioning back to normal
society, some reduced growth has
been experienced, however this is
mainly due to people returning to
their normal lives.

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REFERENCES
01/15/2023