Warner Bros. Discovery, Inc. (NASDAQ:WBD) Q2 2023 Earnings Call Transcript - Page 7 of 7 - InvestingChannel

Warner Bros. Discovery, Inc. (NASDAQ:WBD) Q2 2023 Earnings Call Transcript

And then as it relates to the overlap, I think as we said publicly before, we had — we estimated about 4 million global overlapping subscribers between d+ and HBO Max at the time, with a large portion of that in the U.S. In Gunnar’s remarks, he talked to the fact that we’ve now seen several hundred thousands come out of that in the U.S. And we will continue to presumably to see some further tailing off that overlapping sub base but it has been materially less than we expected. And so that’s the story on the overlap.

Philip Cusick: Can I follow up quickly on the Max side. Do you think that CNN would also require incremental value? Or do you think that could be integrated sort of on the regular product?

David Zaslav: We’re going to talk about news and sports. We’ll be back to you soon on that. And one of the things you’re also seeing with us is we’re winding out a very — there were some low ARPU deals that were — internationally that we just looked at and we just said, that’s not who we are, let’s get out of those deals. And so there has been a focus to say let’s focus on profitability, let’s focus on really good subs. Real value, the economics that we get. The ability to nourish our audience and build on those economics, that’s our future. And let’s get out of these deals that were bargain basement and providing very little ARPU of value.

Operator: This concludes the question-and-answer session as well as today’s conference call. Thank you all for joining. You may now disconnect your lines.

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