Warner Bros. Discovery axes $2.5 billion from content budget: Report

Warner Bros. Discovery is set to cut more billions from its content budget by as far as $2.5 billion, according to Reuters.

The latest merger of the media company is on the drive of cost-cutting, including axing Batgirl. It could reach $2.5 billion, turning up into a pivotal part of the total $3.2 billion to $4.3 billion in a bid to set its financial restructuring.

That’s one way to balance the balance sheet. WBD performed what it called “strategic content programming assessments” to come up with the $2 billion-plus in write-offs of TV series and movies. And there could be more in Q4.

“While the Company’s restructuring efforts are ongoing, including the strategic analysis of content programming, which could result in additional impairments above the estimate provided above, the restructuring initiatives are expected to be substantially completed by the end of 2024,” WBD added in its filing.

The cost-cutting move mirrored Warner Bros. Discovery’s new strategy to gain cost synergies and lessen the $3 billion in debt in its initial two years after its fusion with WarnerMedia.

One of the first axes of this strategy fell to the HBO MAX film Batgirl, made on an estimated $80 million budget and was on the edge of completion.

However, as reported by IndieWire, it wasn’t a one-off. The film write-off also led to the removal of several movies, including An American Pickle and Charm City Kings from HBO Max. Not to mention, shows and movies that are not performing are also removed from the streaming service.

Warner Bros. Discovery has also laid staff in a bid to cut costs. The entertainment giant fired 125 from its TV group, around 100 employees from the ad-sales group, and 70 from its HBO and HBO Max staff.