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How will Warner Bros media video games survive?


richardmurray

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I remember when American Telephone and Telegraph sold Warner Bros media to Discovery channel. 
To me the big points were what? 

AT&T was able to offload hundreds of millions of dollars in debt, from Warner Bros, off themselves to Discovery Channel. 
Discovery Channel was able to buy a horde of media properties on the cheap. 
The head of Discovery channel, who became the head of the merged firm between discovery channel side warner media, said on DAY ONE, day one! The days of high expenditures are over, and downscaling was going to occur.

I recall this very well.
Which is why the responses in the tweet stream below, show the ignorance of USA based e-citizens. 
All this was inevitable. 
What people have to comprehend about Movies/Music/Video games/ any entertainment zone is high cost production is always very expensive or very unwise.
Frank L Baum went bankrupt wtith various investments including making his own Oz movies. 
Nintendo didn't try to mirror Sony or Microsoft cause over time who has money for high end systems.
Beinsports stayed a free service with commercials cause you can only make money with paid subscription streaming by adding users, which assumes potential users will grow. 
Beyonce this year has presented her latest album in the common way, not in her more eccentric methods in recent years.
What do all of these actions have in common? Making high production cost media is not financially wise, long term. 
Those who try it, trip up or go bankrupt. 
AT&T essentially sold a bakrupt media firm to a smaller media firm willing to take the bankrupt media firms debt. 

Yes, the entire banking system in the USA went bankrupt and they were saved. But the parameters for that is unique. The banks have knowledge of various activities, have anchored various financial interchanges with their survival. It doesn't mean they are too big to fail, they were not and are not. But, letting them fail will cause huge financial storms which will take time to settle.
MEdia firms are not the same. AT&T was tired of spending hundreds of millions and didn't want billions of debt to be attached to them, as they are making huge profits in other sectors. 
AT&T is big enough to have a huge line of credit, but AT&T realized this is folly. 
Discovery channel had to cancel all these projects. We all know why? 
PAramount already did similar. Disney is very fortunate. They own the best set of properties and have presented them well enough in a timely fashion to afford heavy expenditures. 
But, most media firms have to scale down high production cost ventures. 
The question is: will fans online , most humans are not online, be able to accept lower production cost content? 
The media reply seems to suggest they will not, as I expected as well. 
In the video game world, the quantity of video game players who talk about the visuals over gameplay is beyond count. Even though most video game players can only afford lower budget. 


TWEET 
https://twitter.com/search?q=%23WarnerBrosDiscovery&src=trend_click&vertical=trends
 

The title of this post is a question

How will Warner Bros media video games survive?

 

The answer is simple, Discovery is downsizing. They are cutting down high production cost activity. I think Discovery will be best if they do like MArvel and sell rights of DC products to be used in various media. Discovery has hundreds of millions of dollars of debt. If I was the CEO of Discovery and I accepted the AT&T deal. I would had killed all the projects in Warner Bros immediately, and put bids out for the huge quantity of media properties , forcing their presentations to be on discovery channel media properties. 

It is like I say with many things in terms of fiscal capitalism. Stop the debt, stop the gambling, stop the games, act extremely and then reset the standards as quickly as possible. It is rougher to do at first, but wiser long term.

 

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