Media entertainment conglomerate, Warner Bros Discovery (NASDAQ: WBD) is considering licensing some of its programming from the HBO content library to its rival, Netflix (NFLX), according to a Deadline report. This would be the first time in nearly ten years that HBO shows would be on a rival subscription video-on-demand (SVOD) service.
According to the report, this distribution deal is likely to be on a non-exclusive basis which would allow the shows to still be streamed on HBO Max. This move is likely to be more a financial move rather than a strategic one after Warner Bros. Discovery CEO David Zaslav had indicated early on that he was willing to forego exclusivity and license content to rake in revenues through content licensing deals.
As a part of this strategy, earlier this year, the company moved to distribute expensive programming titles such as Westworld to streaming platforms such as Roku (ROKU) and Tubi.
Meanwhile, over the past five trading sessions, shares of Warner Bros. Discovery have declined by more than 10% following the disappointing box office earnings of the DC Comics cinematic universe movie, The Flash.
The Flash was expected to draw $70 million over the three-day weekend, but it pulled in just $55.7 million and likely raked in $64.2 million over the four-day weekend, according to Comscore forecasts. However, WBD has suggested that the movie earned only $61 million at the box office, below the company’s own forecasts.
Analysts, however, are bullish about WBD stock with a Strong Buy consensus rating based on nine Buys and two Holds.
