Warner Bros. Discovery: Iger Unlikely To Save Failed DTC Model

Summary

  • Warner Bros. continues to struggle with a horrible model of consumers shifting towards video streaming where costs far exceed revenues.
  • Disney brought back Bog Iger to right the ship in a move that could leave Warner Bros. in a precarious position with a large debt load.
  • The stock isn't appealing, even at $10, unless Iger can tip the failed DTC models towards financial discipline.
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The surprise return of Bob Iger to the CEO position of Disney (DIS) could have huge ramifications for the video streaming sector where Warner Bros. Discovery (NASDAQ:WBD) pays. The streaming

DTC segment results

Source: Warner Bros. Q3'22 earnings release

October report

Source: Nielsen

DTC ARPU table

Source: Warner Bros. Q3'22 earnings release

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Stone Fox Capital Advisors, LLC is a registered investment advisor founded in 2010. Mark Holder graduated from the University of Tulsa with a double major in accounting & finance. Mark has his Series 65 and is also a CPA.


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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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