In early February, the Wall Street Journal broke that Discovery+ would remain as a standalone service for $6.99/month however, most Discovery+ content will still be migrated onto the combined platform.Īccording to Bloomberg, analysts only expect revenue in WBD’s DTC segment to increase 9.67% in FY2023, largely driven by a 10.07% increase in total DTC subscribers.
#NASDAQ WBD PLUS#
In Spring 2023, the company is set to merge HBO Max and Discovery Plus onto one unified platform. Growth Catalysts Post-Merger Growth in ARPU The DTC segment consists of the $15.99/month HBO Max streaming service and the $6.99/month Discovery+ streaming service, which are expected to have 25 million and 80 million subscribers, respectively, at the end of FY2022 according to Bloomberg. While the Studios segment primarily consists of Warner Bros Pictures, the third oldest film studio in the world, the Network segment owns a vast array of properties including HBO, TBS, CNN, and Discovery. The company’s business can be divided into three main segments: studios, networks, and direct-to-consumer (DTC), which contribute 30%, 50%, and 20% of WBD’s FY2022 expected revenues, respectively.
#NASDAQ WBD FREE#
The company was formed in 2022 through AT&T’s tax free spinoff of WarnerMedia, which was subsequently merged with Discovery Inc. Discovery is an American media company headquartered in New York, New York. Hence, we recommend that investors BUY shares of WBD common stock. For these reasons, we believe Warner Bros Discovery has upside of 34.72%, stemming from our valuation of $20.10 per share based on comparable companies.
We expect price hikes from the soon-to-be combined HBO Max and Discovery+ streaming service, as well as the launch of the company's advertising video on demand (AVOD) service will drive top-line and bottom-line growth in excess of analyst expectations. Still, with this being said, we still believe investors have yet to price in the magnitude of value that it set to be created from Zaslav's changes. Investors have been increasingly encouraged by President and CEO David Zaslav's plans to build a "lean and mean" entertainment company that fully monetizes the company's exceptional content library. Discovery ( NASDAQ: WBD) is one of the best-performing stocks in the S&P 500 this year, up 50.00% since January 1st. Active contributors also get free access to SA Premium.
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