Since the merger of WarnerMedia and Discovery, the newly formed Warner Bros. Discovery (NASDAQ: WBD) has shifted its streaming strategy as it carves out its place in a crowded market. Here's why Warner Bros. Discovery is right to play to its strengths and differentiate HBO Max from Disney's (NYSE: DIS) flagship streaming service, Disney+. The rapid introduction of multiple streaming services since 2019 has meant that companies must offer unique services to stay competitive.
Warner Bros. Discovery (NASDAQ: WBD) has garnered a lot of attention after the company canceled the release of two HBO Max projects that were in the last stages of production. The second is Batgirl, a $90 million feature-length movie starring Leslie Grace as the DC Comics character and, according to reports, Michael Keaton returning to the role of Batman. At the time of this writing, Warner Bros. Discovery has provided little insight into its decision to shelve Batgirl, saying only that it reflects "leadership's strategic shift as it relates to the DC Universe and HBO Max." It has said even less about the Scooby-Doo project.
Shares of Warner Bros. Discovery (NASDAQ: WBD) fell 16.5% on Friday, after the media conglomerate reined in investors' growth expectations. Warner Bros. Discovery was formed when AT&T spun off its WarnerMedia assets and merged them with Discovery. The combination joined popular TV networks like TBS, TNT, and CNN with streaming services HBO Max and Discovery+.