Lily Peck

TRF235
Professor Jones
Television Profile
11/08/20

Warner Media Group

30 Hudson Yards
New York, NY 10001
212-484-8000
https://www.warnermedia.com/us/

Key Executives:
CEO- Jason Kilar
Executive Vice President, Chief Human Resources Officer- James Cummings
Chief Financial Officer- Pascal Desroches
Executive Vice President, Strategy and Corporate Development- Priya Dogra
Head of HBO Max- Andy Forssell
Head of WarnerMedia Sales and Distribution- Tony Goncalves
Executive Vice President, Chief Enterprise Inclusion Officer and Head of Marketing and
Communications- Christy Haubegger
Executive Vice President and General Counsel- Jim Meza
Chair and CEO, WarnerMedia Studios and Networks Group- Ann Sarnoff
Chief Technology Officer- Richard Tom

Profile:
WarnerMedia was formed in 2018 when Time Warner merged with AT&T. It is a
multimedia company that includes entertainment, news, and sports content. WarnerMedia owns
Turner, Home Box Office (HBO), and Warner Bros. This allows WarnerMedia to reach a wide
audience, as there is a lot of variety in the content made available under each subsidiary.
Turner owns many popular television channels including CNN, TNT, and Cartoon
Network. The company also owns country and region-specific networks. The revenue from
Turner was $3.2 billion this quarter, which is up 5.6% from the $3 billion in revenue from this
quarter last year. This is due to an increase in content sales to HBO Max, and increased
advertising revenues from the NBA season this quarter, and more news delivery.
HBO gives viewers the opportunity to watch licensed or original series, documentaries,
and movies. It is available in the U.S. as a linear channel, on demand, traditional pay T.V., and
through the HBO or HBO Max apps. Their revenue in Q3 was approximately the same as last
year at $1.8 billion, though it is down 2.1%. However, there has been an increase in subscription
revenues, especially internationally. The current subscriber count for HBO Max is 38 million in
the U.S. and 57 million globally.
Warner Bros. is known for the creation, production, distribution, licensing, and marketing
of entertainment and media. Their revenue this quarter was $2.4 billion, which is 27.7% down
from last year at $3.3 billion. This is mostly due to the COVID-19 pandemic, as many theatres
are closed, and theatrical releases have been postponed, or put at a disadvantage from limited
capacity, if they are released in theatres. For example, Tenet, their most recent release, has
grossed around $55 million and it has been out for ten weeks. Warner Bros. television product
revenue has also been down because of lower television licensing revenue and lower production
revenue due to COVID-19. Overall, the revenue for WarnerMedia this quarter was $7.5 billion,
which is down from last years $7.8 billion because of the decline in revenue from Warner Bros.
and HBO.
WarnerMedia falls under AT&T’s stock, which is $27.44, and the price has been
declining over the past year. Last November, the price was $39.20, and the stock hit its 52-week
low in March at $26.50. Since then, the price has been pretty steady, with small increases or
decreases.
WarnerMedia reaches a large audience, especially between the ages 18-49. In this age
group, Turner holds three out of the top five ad-supported cable networks during primetime, and
four of the top ten cable networks for millennials in total day. At the end of 2017, CNN was the
top news network for primetime and total day for adults between 18 and 34.
WarnerMedia should expect to see a slow and choppy recovery from the pandemic.
While subscriptions are increasing for HBO Max, it will be uncertain how Warner Bros.
theatrical products are able to perform in the next year. WarnerMedia is focusing more on its
streaming platforms to keep a steady revenue.

Sources:

1. “About.” HBO, October 27, 2017. https://www.hbo.com/about/.

2. AT&T. “Q3 2019 Investor Briefing.” AT&T Investor Relations. Accessed November 8,
2020.
https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/201
9/3q-2019/3Q19_Investor%20Briefing.pdf.
3. “Domestic 2020 Weekend 45.” Box Office Mojo. Accessed November 8, 2020.
https://www.boxofficemojo.com/weekend/2020W45/?ref_=bo_wey_table_1.
4. HBO Max. “‘CHAPPELLE'S SHOW," ‘INSIDE AMY SCHUMER," ‘KEY & PEELE,"
‘NATHAN FOR YOU’ and ‘RENO 911’ Available for Streaming November 1 on HBO
Max as Part of Non-Exclusive Licensing Deal with Comedy Central.” Pressroom,
October 30, 2020. Accessed November 8, 2020.
 https://pressroom.warnermedia.com/us/media-release/chappelles-show-inside-amy-schu
mer-key-peele-nathan-you-and-reno-911-available.
5. Lyons, Kim. “HBO Max Has 28.7 Million Subscribers, but Not All of Them Are Actually
Watching Yet.” The Verge. The Verge, October 22, 2020. Accessed November 8, 2020.
https://www.theverge.com/2020/10/22/21528234/hbo-max-subscribers-activations-att-dir
ectv-warner.
6. “Q3 2020 Investor Briefing.” AT&T Investor Relations. Accessed November 8, 2020.
https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/202
0/q3-2020/3Q2020_Investor_Briefing_Final.pdf.
7. Reiff, Nathan. “AT&T and Time Warner Merger Case: What You Need to Know.”
Investopedia. Investopedia, September 12, 2020. Accessed November 8, 2020.
https://www.investopedia.com/investing/att-and-time-warner-merger-case-what-you-need
-know/.
8. Steigrad, Alexandra. “HBO Owner AT&T Squeezed by Losses in Entertainment Unit
WarnerMedia.” New York Post. New York Post, October 22, 2020. Accessed November
8, 2020.
https://nypost.com/2020/10/22/hbo-owner-att-squeezed-by-losses-in-entertainment-unit-
warnermedia/.
9. Turner Entertainment. Accessed November 8, 2020. https://www.international.tbs.com/.
10. “Warner Bros.” WarnerBros.com | Company Overview. Accessed November 8, 2020.
https://www.warnerbros.com/studio/about/company-overview.