[Music] So let's say we want to do an experiment, right. And we say you're going to be given 30 days to yourself alone. You have access to everything you need like food, water, everything in your house alone, but you're not going to use your phone and you will not have access to the internet.How many of us will sign up for this experiment. A show of hands. Interesting. Interesting.Okay. All right. All right.Thank you. Okay. Okay.So, yeah. So for some of us it's going to be like a dream come true because I c ...

Investors betting on a Paramount Skydance Corp PSKY–Warner Bros Discovery Inc WBD tie-up aren't just buying into a flashy studio mash-up; they're staring down a high-stakes reshaping of Hollywood's balance of power. Thursday's price action was telling: WBD's 28% surge — its best day ever — signals Wall Street sees real M&A premium potential. In comparison, Paramount Skydance's 15% jump reflects investor faith in CEO David Ellison's acquisition strategy and deep capital backing from RedBird and Larry Ellison ...

Core Message - Failure is not the opposite of success, but a crucial stepping stone towards it [1] - Embracing failure, learning from it, and daring to try again are key to enduring achievements [1] - Failure teaches unique lessons that success often cannot [1] - Courage in moments of failure becomes a bridge between falling and rising [1] Examples of Success Through Failure - JK Rowling faced countless rejections and poverty before creating Harry Potter, transforming challenges into fuel for determination [1] - Oprah Winfrey was fired from her first TV job but became a global icon, demonstrating courage and belief in her potential [1] - Michael Jordan missed almost 9,000 shots and lost almost 300 games, highlighting that brilliance is about never giving up [1][2] Call to Action - Embrace failure as a stepping stone to success, not a stumbling block to defeat [4] - Rise again stronger and wiser after falling [4] - Learn from mistakes and continue [5]

Financial Data and Key Metrics Changes - Warner Bros. Discovery's Studios business is projected to deliver at least $2.4 billion in adjusted EBITDA in 2025, with a goal of reaching $3 billion [9] - The streaming business is on track to exceed $1.3 billion in adjusted EBITDA in 2025 and aims for over 150 million subscribers by 2026 [9][10] - The company has reduced its net leverage from over five times to 3.3 times, the lowest since the merger [10] Business Line Data and Key Metrics Changes - The Motion Pictures segment achieved a milestone by opening five consecutive films with over $45 million in domestic box office [7] - HBO Max added more than 3.4 million subscribers in Q2, continuing its global expansion [9] - Warner Bros. TV led all studios in Emmy nominations, with HBO setting a record of 142 nominations [8] Market Data and Key Metrics Changes - The company is focusing on enhancing its content licensing strategies, with an annual library revenue target of $5 billion from Warner Bros. TV and film [12] - The Networks content sales reached $580 million in 2024, significantly above the normalized run rate of approximately $200 million per quarter [20] Company Strategy and Development Direction - The strategic objectives include being the premier home for creative talent, producing high-quality film and television, and distributing content through a profitable streaming service [6] - The company is investing in its creative and operational capabilities across various segments, including HBO, Warner Bros. television, and DC studios [9] - Plans to split into two independent publicly traded companies in 2026 are underway, with current momentum expected to position both for long-term success [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's creative success and growth trajectory, particularly in the Motion Pictures and streaming segments [9] - The focus remains on delivering high-quality content and enhancing the consumer experience, with expectations for significant growth in the coming years [54][90] Other Important Information - The company is reimagining its U.S. networks portfolio as a content engine around strong unscripted brands, moving away from traditional linear networks [19] - There is a strong emphasis on bundling strategies to reduce churn and enhance customer lifetime value [83] Q&A Session Summary Question: Content licensing strategies for Warner Brothers and Discovery - Management highlighted the importance of maintaining asset value and growth over short-term financial gains, opting to sell less content into the streaming market to drive growth for HBO Max [13][14] Question: Future franchises and growth opportunities - The company is focusing on leveraging its extensive IP portfolio, including major franchises like Harry Potter and Superman, to drive revenue across various channels [26][30] Question: HBO Max U.S. distribution deal restructuring - The restructuring of the legacy deal is expected to impact revenue growth positively after 2026, with new international launches planned [46][49] Question: Addressing marketers' desire for cross-platform advertising - The company is maintaining synergy opportunities in ad sales and has seen strong pricing across all categories, particularly in sports [75] Question: Reducing churn and converting unauthorized account shares - Management is in the early stages of addressing account sharing and is implementing strategies to reduce churn through improved content scheduling and bundling [81][84]

Financial Data and Key Metrics Changes - Warner Bros. Discovery reported strong momentum in its financial performance, with the Studios business on track to deliver at least $2.4 billion in adjusted EBITDA in 2025, aiming for a $3 billion goal [8] - The streaming business is projected to exceed $1.3 billion in adjusted EBITDA in 2025, with a target of over 150 million subscribers by 2026 [8][9] - The company has significantly reduced its net leverage from over five times to 3.3 times, the lowest since the merger [9] Business Line Data and Key Metrics Changes - The Motion Pictures segment achieved a milestone by opening five consecutive films with over $45 million in domestic box office [7] - HBO Max added more than 3.4 million subscribers in Q2, continuing its global expansion [8] - Warner Bros. TV led all studios in Emmy nominations, with HBO setting a new record of 142 nominations [7] Market Data and Key Metrics Changes - The company is focusing on optimizing its global networks, including CNN and TNT Sports, to drive innovation in news, sports, and unscripted programming [9] - The U.S. networks portfolio is being reimagined as a content engine around strong unscripted brands, with content licensing expected to play a significant role in monetization [20] Company Strategy and Development Direction - The strategic objectives include being the premier home for creative talent, operating as the largest producer of film and television, and distributing content through a profitable streaming service [6] - The company is investing in its creative and operational capabilities across various segments, including HBO, Warner Bros. television, and DC studios [8] - Warner Bros. Discovery plans to split into two independent publicly traded companies in 2026, positioning both for long-term success [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's creative success and the positive trends in subscriber growth and content quality [8] - The company is focused on enhancing the consumer experience and addressing the challenges in the streaming landscape, including churn reduction and account sharing [88][89] Other Important Information - The company is exploring opportunities in theme parks and live events related to its franchises, with a focus on maximizing the value of its intellectual property [40][44] - The restructuring of the HBO Max U.S. distribution deal is expected to impact revenue growth positively after 2026 [46][49] Q&A Session Summary Question: Can you talk about your content licensing strategies? - Management highlighted the importance of maintaining a strong internal content library while balancing external licensing opportunities to drive growth [13][15] Question: What future franchises do you see as having a halo effect on the organization? - The company is focusing on leveraging its well-known IP, such as Harry Potter and DC characters, to create stability and growth across various revenue streams [27][30] Question: Can you comment on the restructuring of the HBO Max U.S. distribution deal? - The legacy deal adjustments are expected to have a meaningful impact on revenue growth, with a reacceleration anticipated after 2026 [46][49] Question: How are you addressing churn and unauthorized account sharing? - Management indicated that they are in the early stages of addressing account sharing and are implementing strategies to reduce churn through improved content scheduling and bundling [84][88] Question: How does the engagement look for ad-supported subscribers versus direct sign-ups? - The company is focusing on activation and engagement strategies for wholesale subscribers, with positive trends observed in recent partnerships [66][70]

Core Insights - Warner Bros. Discovery's earnings were positively impacted by successful film releases in Q2, generating $2 billion in global box office revenue [1] - The studios segment reported a 55% increase in total revenue to $3.8 billion, with theatrical revenue up 38% [2] - The company anticipates continued momentum, projecting at least $2.4 billion in adjusted EBITDA for the studios segment for the full year [3] Group 1: Financial Performance - The studios segment's adjusted EBITDA rose to $863 million, up from $210 million year-over-year [2] - Overall, WBD's total revenue increased by 1% to $9.81 billion in Q2, with adjusted EBITDA rising 9% to $1.95 billion [9] Group 2: Film Releases and Future Projections - The success of "Superman," which generated $220 million globally in its opening weekend, is expected to boost Q3 performance [4] - The company aims for two or three major tentpole releases annually to ensure stability, leveraging its franchise library [7] Group 3: Strategic Changes and Leadership - CEO David Zaslav emphasized the need to revitalize the studios following the merger in 2022, which faced challenges from the pandemic and labor strikes [5] - Key appointments, including James Gunn and Peter Safran for DC Comics, were made to strengthen the superhero film division [6] Group 4: Organizational Restructuring - The company plans to split into two units next year: Warner Bros. for studios and streaming, and Discovery Global for TV networks and sports [9] - Staff cuts of 10% were announced for Warner Bros. Motion Picture Group as part of ongoing restructuring efforts [8]

Core Message - The speech emphasizes the importance of a growth mindset (grow mindset) versus a fixed mindset (fixed mindset) in achieving success and pursuing dreams [1][10][11] - It highlights that talent is not the sole determinant of success; skills and training are equally crucial [4] - The speech advocates for embracing experimentation and continuous development in life [4][6][7] Illustrative Examples - The speaker uses the story of J K Rowling, who faced numerous rejections before achieving success with Harry Potter, to exemplify perseverance [1] - Michael Jordan's journey, including being cut from his high school team and later overcoming his father's death, illustrates the power of resilience and determination [2] - The speaker shares a personal anecdote of overcoming a dog bite and a sports injury to demonstrate the application of a growth mindset in personal challenges [3][5][6][8] Psychological Insights - The speech references Carol Dweck's research on mindset and its impact on motivation and achievement [1] - It acknowledges the role of emotions and the limbic system in influencing behavior and decision-making [9][10] - The speech underscores the significance of mental well-being and self-care in pursuing goals [1]

Company Overview - Scholastic is known for popular children's and young adult book series such as "Clifford the Big Red Dog," "The Baby-sitters Club," "Harry Potter," and "The Hunger Games" [1] Strategic Focus - The company is currently focused on engineering a "comeback story" [1]