Content

Sl. No. Topic Page

Front Page

Acknowledgement

1 Overview 1

2 History 1

3 Company Profile 2
4 SWOT Analysis 8

5 PESTLE Analysis 10

6 STP Analysis 12

7 Customer Buyer Behavior 14

8 COVID affects 16

9 Beyond the new normal 19

References
 1. Overview
1.1. Mission
“We aim to deliver the world’s best stories and most engaging content from
talented storytellers and journalists to audiences around the globe.”

1.2. Objective

The company want to bring new approach to media and entertainment industry and
coordinate with consumers, creators’, distributors, and advertiser to bridge the gap between
the connect content and connectivity. they also want to provide more choices, values and
innovations to its consumers and deliver quality experiences in entertainment sector.

• Develop world class library all stop music movies and shows on digital platform
forward better mobile viewing experiences
• Integrate video on all social media platforms, applications, and devices

Warner Media’s brands are world leaders in creating premium content. They operate one
of the world’s largest TV and film studios and own a deep library of entertainment. They
also manage popular digital sites such as Bleacher Report and some of our growing family
of streaming services including HBO NOW, Boomerang and DC Universe. And we offer
a strong portfolio of advertising solutions.

2. History
The company was originally named as Warner Brothers which was formed by four brothers
Harry Albert Sam and Jack Warner. Jack who was youngest worked in movie theaters and
has acquired a movie projector Ann showed movies in Pennsylvania. Sam an Albert
invested some money to open their first theater.

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The first studio of Warner Brothers was established in Hollywood in 1918. But formally
Warner bro picture incorporated was launched in 1923 by Harry by borrowing money from
a banker.

Warner Bros produced some smart small films using Vitaphone for their soundtracks in
1926 that was a huge success, also Rin Tin Tin the movie on a dog.

In 1930-33, Harman And Ising studio made musical cartoons for Leon Schesinger which
was later sold to Warner and this way the first Looney Toon cartoons came into existence.

Warner made a television debut in 1955 through Warner Bros television unit which was
run by William T. Orr who was the son in law of Jack Warner.

In year 1966 Jack give up the position due to his age and changing times, and two-year
later Kenny national company under Ted Ashley and Steve Ross purchased the Warner bro
majorities share and became the new owner.

In 1989 what are merged with time and became Time Warner after a bloody battle with
paramount who came to buy Warner.

In June 2018 Warner Bros parent company Time Warner was purchased by AT&T the US
telecom giant and once again the name of the company was changed this time Warner
Media as we know it now.

3. Company Product Profile

3.1. Warner Bros. is the leading global films producers of the film and
television series. There is diverse segment of feature films, the Wizarding
and fantasy world, highly admired Sci-Fi, even historical legends.

Some of the blockbuster films was produced by WB:

Harry Potter Series of wizarding world

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Lord of the Rings Series

The Christopher Nolan’s Batman Series

Matrix

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Terminator 300 Troy

3.2. DCU is a subsidiary of Warner Media Group (AT&T). DC

universe Comprises of DC Comics division, DC animated feature films,
television programs, games based on DC characters.

These characters are the Iconic heroic characters like Batman, Superman, Wonder
Women, Aqua-man, Flash. It is also the home of very well-known Anti-hero
characters like Lex Luthor, Harley Quin, most admired Joker and many more.

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WB is also Television series based on DC with various collaborations.
Arrow, Flash, Supergirl, Lucifer, Legends with CW; Gotham with the FOX it caters the
unique viewership’s of the greyer shades; Preacher with on the darkness AWC, and many
more.

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 3.3. HBO Max the all new premium streaming services launched by
Warner Media Group that is aimed at utilizing the recent bloom in
OTT all over the world. Company aims at providing all its trademark
offerings like movies, animated features and also the new contents
on it. It is only offered in limited countries mainly in western hemisphere for now.

Warner Media
Revenue ($ In Bilions) Operating Income($ In Bilions)

10

0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2017 2018 2018 2018 2018 2019 2019 2019 2019

Warner Bros
Revenue ($ In Bilions) Operating Income($ In Bilions)

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Q4 Q1 Q2 Q3 Q4
2018 2019 2019 2019 2019

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 HBO
HBO Revenue ($ In Bilions) HBO Operating Income($ In Bilions)

1.5

0.5

0
Q4 Q1 Q2 Q3 Q4
2018 2019 2019 2019 2019

BCG Matrix

Relative Market Share

High Low
Market Growth Rate

Low High

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 4. SWOT Analysis
Streng
th

SWOT Weak
Threat
Analysis ness

Opport
unities

Warner Media (also popularly known as Warner Bros) is one of the power houses or Media
Giants company. The company has diversified itself into many sectors, cable TV,
streaming, feature films, video games, animation are some of them. This helps the company
to minimize the risk. As there is a downwards trend in TV segment and rise in OTT
platforms.

4.1. Strength
• There has been consistent cash flow in the company from various sources.
• The cable networks & tv channels have been providing the bulk of its operating
cash, where the company still maintains its dominance
• There has been Significant presence of Warner Media in one or other forms. HBO,
Blockbuster movies. The company is able to show its presence in the market
• The diversified contents with segregated target groups. For example, there is video
games targeting gaming enthusiasts, animated programs to target children and
teenagers.
4.2. Weakness
• Like other media companies it has also involved in legal proceeding, regarding
some of the gaming and movie partners over corner cutting or use of digital
resources.

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• The company’s concentrations have been primarily over its operations in US
Canada. Although it has presence in other parts of the world. But major chunks of
its revenue are from North American continent only.
• Lately the company has been trying to increase its foothold in Asia, with promoting
the local tailor-made content from this region rather than sourcing content from
western culture.
4.3. Opportunities
• There has been positive demand of media content all over the world. In recent years,
the contents delivered by the media houses are well liked thanks to globalization
trends. The movies are well liked in eastern parts of the world assisted accelerated
by cultural exchange programs.
• The company has made some strategic investments in OTT platforms, and has also
put the prime focus on the development of HBO Max, it has Strengthen the
Presence of Company on OTT.
4.4. Threat
• Like any other Media Houses the constant Problem that looms are the distributions
of its contents, whether it is movies, songs, games over the grey market like torrent
sites, piracy of intellectual rights.
• The technology like cloud storage, data transmission has also accelerated the
distribution of the unauthorized copies. It has resulted in consisted loss in the
revenue of not only the company but all of media companies are suffering the same
sting.
• Intense competition, the company is not only competing with other media giants
like Walt Disney, Viacom, but also with the age of technology and ease of content
sharing over internet, smaller series by hobbyists over YouTube and other free
streaming sites has also shaken the premium content providers.
• The company is also competing with its own content which is distributed over free
of cost torrents sites.

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 5. PESTLE Analysis

Political Economic

Social Tech

Legal Environment

5.1. Political factors

• Political situation in US & Canada from where most of the revenue of more than
half has been coming for the company is the main concern for the company. The
USA is going to face the elections season. And based on the party coming to power
company has to rephases its strategies.
• The current regime of Donald Trump has been so far friendly to industries who are
based in America
• With company going out to new market like Europe and Asia. The current
sentiment varies from country to country. Turkey in Europe and China in Asia has
been blocking US based companies more. Opposite to that India and Vietnam has
liberalized it policies.
5.2. Economic
• The economic situation of the country also directly influencing the various
positions.
• Factors like GDP, Per capita income, purchasing power, employment, inflation
directly affect the operation of any company in given ecosystem. As Entertainment
industry is directly related to well-being of consumer.
• Taxing policies of the Nation also related to the growth of any company.

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5.3. Social
• The cultural and social setting in a country directly affect the selection of content
in the entertainment. It depends on the whether the countries have rigid
conservative value system.
• Increasingly, the cross-cultural exchanges world has become a global village now.
the demography has changed due to open access to internet and other factors.
• The people are now more open to the controversial topics like same sex marriages.
Now the people open to talk and watch contents related to these topics.
5.4. Technological
• The new technologies have been pioneering the development of the industry as a
whole. The 3D movies have been the greatest example for the industry zeal to adopt
new tech.
• Emergence of IT has integrated the supply chain of products for media houses. The
movies hard copies are not distributing to cinema halls. They are centrally
distributed over IT channels now
• The emergence of newer gen of mobile networking devices has given birth to OTT
platforms along with VR systems are also been integrated in the Gaming gives the
immersive experience for the user.
5.5. Legal
• Licensing issue with other collaborations present the legal barrios of effective
utilizations of resources, problems with IR sharing.
• The changes in the rules and regulations like data privacy laws, presents restrictions
of providing services of to consumers preferences.
5.6. Environment
• There has been a rise in environmentalist, present added responsibilities to
company to decrease its carbon footprints on the environment.
• The products offered by company should be compliant with the norms and
environmental guidelines, for example level of radiations from communication
infrastructure on their effect on the animals and community as a whole.

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 • Companies invest major part of its revenue in CSR activities to contribute to society
and Environment.

6. STP Analysis

6.1. Market segmentation

Market segmentation means dividing a market into smaller segments with the distinct
needs, characteristics or behavior that might require separate marketing strategies or mixes.
There are different ways to segment a market:
Geographic segmentation: Geographical presence of Warner media is highly
concentrated and not American countries like USA and Canada. Company has been trying
to penetrate markets like Europe and Asia. The movie segments of Warner media that is
Warner Bros has a presence worldwide, have an digital distribution of films has contributed
considerable amount of revenue from Europe and Asia as there are some popular movies
like Wonder Woman, Aqua man has soon better performance in this region.

Demographic segmentation: Based on the target market, demographic targeted by

Warner media is mostly the young teens young adults and kids, who are mostly attracted
by the fictional world presented by The Warner Media Group some of the example of their
success and Matrix series, the Lord of the rings series, Harry Potter series, and also the
superhero series of DC universe.

Psychographic segmentation: Warner media is present in all the different segments like
social class lifestyle and personality characteristics of their viewers whether alone or with
partnership with other firms they have produced contents that caters viewers of Unique
genre the series Gotham, Lucifer Arrow, Suicide Squad, Batman series caters to grey, while
Supergirl, Flash, Wonder women, Aquaman to viewers who like sunshine, Big-Bang
Theory, Scooby, Friends are popular for comic contents.

Behavioral segmentation: Knowing a behavior attitude of customers Warner media has

started to produce some of its successful series like Wonder Woman, Flash the TV series,
and one the most high rated Games of Throne in recent times on demand.

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Company aims at providing all its trademark offerings like movies, animated features and
also the new contents on it, whether free or with a premium fee on OTT platform like HBO
Max or in collaboration with Netflix.

6.2. Market targeting

Market targeting is the process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter. A target market consists of a set of buyers sharing
common needs or characteristics that the company decides to serve. There are several
forms of market targets what Warner media follows.
Undifferentiated (mass) marketing: Warner media targets the larger audiences which are
inclined toward movies through this medium. undifferentiated marketing is ready helpful
in popularizing the upcoming movies and programs through this channel.
Differentiated marketing or segmented marketing: The target of Warner media in
differentiated segments are mostly the comic lovers, anime freaks, superhero end gamers.
Particularly DCU caters to the need of this differentiated market. but in the recent years
Warner media has been trying to sell some of its gaming division and a part of animation
division also.
Concentrated marketing (niche): The concentrated marketing is the new normal in the
OTT platform, as through these apps, companies get the preferences and choices of the
customers. And using the analytical tools, Like Bigdata, AI learning company can provide
customized contents to its viewers.

6.3. Market positioning

Positioning is arranging for a market offering to occupy a clear, distinctive, and desirable
place relative to competing products in the mind of target consumers. A product position
is the way the product is defined by consumers on important attributes: the place the
product occupies in the consumers’ minds relative to competing products.

In simple language what comes in the mind or conscious customers when the name of
Warner Media i.e. Warner Bros, HBO and DCU.

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 People identifies it as an Entertainment Company that produces movies Warner Bros. But
it is whole some media company with its roots in all media segments. With all the profiles
segments with involves Media Segment, Studios, Gaming and Animation division follows
digital supply chain system and the lesser known hospitality services.

Large Innovation

Narrow Audience
Wide Audience

Low Innovation

Positioning Map

7. Consumer Buyer Behavior

Consumer buyer behavior is the buying behavior of final consumers: individuals and
households that buy goods and services for personal consumption.

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7.1.Cultural factors

Majority of its business was focused on northern American countries. So, it was also visible
in the content being offered, majorly to culture of Americans. But with saturation in the
market, Warner media had to search for alternate markets like Asia and Europe. These
markets showed much potential as Movies like Wonder Women, Aquaman were hugely
successful in these markets. It has also added some of Chinese series to its programs list to
establish a link with its conservative market, like Warner Media has announced its next
HBO Asia Original series Miss S.
7.2. Social factors

In entertainment industry we have plan according social factors as the group behavior
increase the spread market presence. It is said that the chain is formed if anyone in the
group suggests any programs, movies. The word of mouth has been modified to social
media buzz considering the advent of social networking sites. Also, the companies are
investing in online influencer more and more to refer some of the programs online to make
some shows popular. Which can be seen in Netflix case now a days, which has partnered
with Warner media.

7.3. Personal factors

Some people like Romcom, some Thrillers, some Fantasy, History, Superheroes, while
others like Anti-Heroes, complex, dark drama. These personal preferences also effect the
contents served, as with Big Data helping to companies to customize the content delivery
to viewers. These are many factors that influences personal choices.
7.4. Psychological factors

The current trend of using OTT platform and apps coupled with the AI learning, Data
handling has empowered the media companies to invest hugely in these segments, like
HBO Max. It provides real time insights into the psyche of the viewership and enables the
company point targeting. It also provides unadulterated primary data to the Company to
increase the customer targeting by other marketing practices were the density of use is
more.

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8. COVID Impacts
March 2020:
• CNN launches Coronavirus: Fact vs. Fiction Newsletter
• Warner Media Stops Productions Across Television
• HBO Max Launch Not Expected to Be Delayed
• To ensure a safety, the Cartoon Network Hotel in East Lancaster, Pennsylvania,
temporarily closed.
• Warner Bros. Digital Releases “The Way Back” and “Birds of Prey” and “Just
Mercy” “Impractical Jokers.
• “Wonder Woman 84” rescheduled. HBO postponed “The Undoing” & “I Know
This Much Is True”
• DC Launches DC Kids Camp to Help Parents Engage Kids at Home.
• “Contagion,” COVID-19 cast, and crew does a campaign to create awareness
about COVID-19.
April 2020
• TNT’s “Snowpiercer” Premiere postponed
• HBO Encourages Viewers to #StayHomeBoxOffice with Dozens of Free Series,
Documentaries and Hit Warner Bros. Movies on HBO NOW & HBO GO.
• DC Comics Donates $250,000 to Support Comic Book Retailers
• Harry Potter Studio Tour Buses transported Health Workers Free to Hospitals.
• Warner Media made some content available for free worldwide.
• Warner Bros releases “Scoob!" movie digitally
• The "Friends" Cast to raise money for COVID-19 Relief
May 2020
• Introduced Special Book Readings, Daniel Radcliffe narrated Chapter One: ‘The
Boy Who Lived’.
• HBO Redirected Funds for Annual Emmy Party and FYC Events, organizing $1
Million to COVID-19 Crisis Fund
June 2020
• Warner Bros. rescheduled the movies: TENET, WONDER WOMAN 1984,
GODZILLA VS KONG, TOM & JERRY
• AT&T Launches Summer Camp Featuring Warner Media Content to, a wide
range of free, virtual.
August 2020
• Warner Bros. held its first-ever DC Fan Dome- Free virtual fan experience
celebrating DC’s past, present, and future.

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8.1. Finances
Stock Price of AT&T (YTD) (The Parent Company of Warner)

Source: Yahoo Finance

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8.2. Reports
Quarter 4, 2019
Revenues: $8.9 billion, down 3.3% year over year.

It was primarily driven by lower Warner Bros. revenues, partially offset by gains
at Turner and HBO
Operating Expenses: $6.5 billion, down 1.6% year over year.
It was primarily due to lower expenses at Warner Bros., partially offset by higher
expenses at HBO and Turner
Quarter 1, 2020
Revenues: $7.4 billion, down 12.2% year over year.
It was primarily driven by lower revenues in Turner advertising and declines at
Warner Bros.
Operating Expenses: $5.7 billion, down 7.8% year over year
It was primarily due to lower costs at Turner, partially offset by higher expenses at
HBO and Warner Bros
Quarter 2, 2020
Revenues: $6.8 billion, down 22.9% year over year.
It was driven by declines across all units
Operating Expenses: $4.9 billion, down 25.1% year over year.
It was primarily due to lower costs at Turner and Warner Bros., partially offset by
higher expenses at HBO
Source: AT&T Financial Report

Pre COVID Post COVID

Parameters Quarters 4Q19 1Q20 2Q20

Revenue $8,924 $7,359 $6,814

Change -$1,565 -$545
Percent Change -18% -7%
EBITDA $2,576 $1,842 $2,080
Change -$734 $238
Percent Change -28% 13%

Figures in Million $ Source: AT&T Financial Report

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8.3. Staff Layout
Warner Media, along with HBO has been laid off approx. 800 of its employees.
This is the restructuring initiatives that was already in place by AT&T to reduce the
debt-ridden company, which was earlier Warner Bros, the COVID has just fast
tracked the already process. There have been approx. 650 staffs has been let go in
Warner and 175 staffs of HBO.

The online DC Comics based streaming goes to back seat, as the company has been
pushing integrated approach to merge it with HBO Max platform. It is indicated
that, the DC Universe will face some job cuts in the future. Comics personals who
will be ousted along with Warner Bros, HBO staffs may near to a thousand count.

9. Beyond the “The New Normal”

The Shift: The other sector who turning to localization tend, “Entertainment” is the
sectors that are just shifting the gears. The entertainment business is the affected by
the at certain extent. The content creation field is the only that is being localized. It
is now focusing on developing different channels of supply chains, like end-to-end
services, like OTT streaming like “HBO Max”.

‘Digital’: The digital platforms are already in place in the entertainment, but that
caters only to the Cinema and multiplexes. But with high tech in 4G and in future
5G and increased affordability of cheapest Per GB Data cost in the world. These
reasons have pushed digital platforms are availability in our pockets. And the media
companies have also come to realize about the untapped market potential. Although
Covid-19 has caused initial hiccups, but after it gained momentum, it has reached
the new heights. So much that even the Movies are premiering on these devices.

Cash to free then to cash again: The CoVID-19 times Media houses have relied on
the classical marketing practice to give the premium benefits free of cost, and when
the customer is hooked to services than charging again now. This business model
has proven useful in driving traffic. Now the challenges are to retain these users.

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Minimalistic: The companies are now cutting costs. They are operating out on bare
minimum support staff during production; they have changed Operations method.
It is mandated by some governments, and also voluntary. The contact points have
been reduced, as the concerts, and fandom events are held virtually.

Sensing the migration: There has been a shift in the demand from movies, tv
channels to the OTT. Everything that was earlier available, and more is now
accessible on the six-inches screen. The long-awaited movies are which were
scheduled for release, because of disruptions on theatre and multiplexes are now
released on the apps. When the customers cannot go to movies, the movies are now
coming to customers, directly.

Supply & demand: the diversification of supply channels has helped the companies
to supply the content to the consumers. And the customers are starved for
entertainment owning to CoVID-19, are taking whatever, they can get to pass
through these difficult times. To stay relevant, they have to emphatically supporting
the new technological initiatives. It has proven to be more efficient, minus the risks
of exposure.

Customer Centricity: The customer is the king. The Entertainment industries that
are very much influenced with the liking of customers. and with so many options
now available to the customers at various platforms. Now the companies have tons
of data that are available. The big data and data analytics are now helping the
entertainment houses to customize contents according to the individual preference
of the end users.

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References
• Yahoo finance
• https://www.warnermediagroup.com/what-warnermedia-doing-response-
covid-19
• https://en.wikipedia.org/wiki/WarnerMedia
• https://www.warnermedia.com
• https://investors.att.com/
• https://investors.att.com/~/media/Files/A/ATT-IR/financial-
reports/quarterly-earnings/2020/q3-2020/ATT3Q20EarningsRelease.pdf
• https://investors.att.com/~/media/Files/A/ATT-IR/financial-
reports/quarterly-earnings/2020/q3-
2020/3Q2020_Investor_Briefing_Final.pdf
• https://investors.att.com/~/media/Files/A/ATT-IR/financial-
reports/quarterly-earnings/2020/q2-
2020/ATT%202Q20%20earnings%20release%20V2.pdf
• https://investors.att.com/~/media/Files/A/ATT-IR/financial-
reports/quarterly-earnings/2020/q2-2020/q2-2020-investor-briefing.pdf
• https://investors.att.com/~/media/Files/A/ATT-IR/financial-
reports/quarterly-
earnings/2020/Q120/ATT%201Q20%20Earnings%20ReleaseFinal.pdf
• https://investors.att.com/~/media/Files/A/ATT-IR/financial-
reports/quarterly-
earnings/2020/Q120/Q1_2020_INVESTOR_BRIEFING_0428_1015am.pd
f