Tag: Jason Kilar

Posted on in Film News

WarnerMedia’s Hybrid Release Model Shaping Up To Become A $1 Billion Loss – Called A “Major Misstep”

In December, WarnerMedia announced plans to release all of their 2021 slate in theaters and on their streaming service HBO Max (free for one month with subscription) on the same day, the hybrid release model was controversial and led to reports of their partner Legendary Entertainment gearing-up for a lawsuit. Legendary attempted to sell-off Godzilla Vs. Kong to Netflix for a massive $200 million but Warner Bros. blocked the deal only to announce they would be giving the film away to HBO Max subscribers for free. Directors Christopher Nolan and Denis Villeneuve also were vocally upset that directors weren’t properly informed about the move and mentioned how harmful the hybrid release would be to the industry.

The plan seemed to be sacrifice the Warner Bros. Pictures slate to coax a boost in domestic subscriber numbers for the floundering HBO Max that launched last year, however, the numbers haven’t been stellar in comparison to other streaming competitors.

It’s now May, and it was recently announced there would be a WarnerMedia-Discovery merger with rumblings from business news outlets that WarnerMedia CEO Jason Kilar was kept in the dark about the deal and is getting ready to exit. There is also chatter that the merger could signal an easier sale of WarnerMedia in the future, however, no potential buyers have been mentioned.

New information suggests that the hybrid release model at Kilar’s direction wasn’t as lucrative as hyped-up to be, mentioned in an Variety report they state industry sources believe the hybrid model may end up a billion-dollar loss due to high license feeds paid and sluggish subscriber sign-up.

Moreover, industry sources say the strategic move that made such a splash last December — when WarnerMedia at Kilar’s direction opted for simultaneous releases in theaters and on HBO Max for Warner Bros.’ 2021 movie slate — is seen as a major misstep because it is shaping up to cost the studio over $1 billion in lost box office revenue, talent profit participation payments and in high license fees paid for the movies from HBO Max. Unless the pace of HBO Max subscriber additions pick up significantly in the coming months, the high cost of the movie content for the streamer will be hard to justify.

While WarnerMedia insists that other films such as Dune are still sticking to the hybrid release in October, there have been conflicting trade reports that we could see exclusive theatrical windows return before 2022.

SOURCE: VARIETY

Posted on in News

WarnerMedia CEO Jason Kilar Reportedly Exiting After Being Kept In The Dark About Merger

A little over a year after being hired by AT&T CEO John Stankey to run WarnerMedia, Jason Kilar is looking for the exit, according to a report from The New York Times. Stankey announced that Discovery and WarnerMedia would be merging in a shocking media announcement today while avoiding multiple questions about Kilar’s future role at the company.

Jason Kilar has hired a legal team to negotiate his departure as chief executive of WarnerMedia, according to two people briefed on the matter. AT&T, which owns WarnerMedia, said on Monday that it had agreed to spin off the division and merge it with a rival media company, Discovery Inc. Mr. Kilar was kept in the dark about the deal until recent days, the people said, speaking on the condition of anonymity to discuss private conversations.

This comes after subscribers for their HBO Max service seemingly wasn’t doing as great as other competitors and WarnerMedia sacrificed hefty budgeted blockbusters to hand-out a free month of access to new releases on HBO Max as part of their controversial day-and-date release model. There were also reports like the one at Bloomberg that Kilar was earning more than his boss at AT&T, another controversy as most studios were hemorrhaging money last year making the pay-bump a bit ridiculous.

While speaking on CNBC, business journalist Kara Swisher had more dire perspective on the news saying that John Stankey is simply wasting shareholder money trying to catch-up with mega-streamers like Netflix, Amazon, and Disney. It should be noted this is simply an opinion but this is also coming from someone with years of experience covering these kinds of stories.

SOURCE: THE NEW YORK TIMES