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No NBA deal yet for Warner Bros. Discovery, but David Zaslav is 'hopeful'

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No NBA deal yet for Warner Bros. Discovery, but David Zaslav is 'hopeful'

The shot clock is ticking down on Warner Bros. Discovery in its effort to land a new media rights deal for the NBA.

Warner Bros. Discovery Chief Executive David Zaslav said Thursday the company continues negotiating with the league to retain its package of NBA contests, a marquee attraction for its TNT cable channel, but offered no clue on where the discussions would end up.

“We’re hopeful that we’ll be able to reach an agreement that makes sense for both sides,” Zaslav told Wall Street analysts on the company’s first-quarter earnings call. “We have had a lot of time to prepare for this negotiation and we have strategies in place for various potential outcomes.”

Zaslav added that the company has the rights to match offers from other companies. But the executive took no questions about what could be a game-changing deal.

Comcast reportedly has a $2.5-billion offer in with the NBA for a package of games to air on its Peacock streaming service and its broadcast network NBC. Amazon’s Prime Video is said to have a deal for exclusive NBA games as well, adding to the streaming service’s growing portfolio of sports properties.

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With Disney’s package for ESPN and ABC expected to remain in place, the focus has been on whether anything will be left on the table for Warner Bros. Discovery. There has been speculation that the company could end up with fewer games under a new arrangement that takes effect after the 2024-25 season.

Losing the package would bring long-term ramifications for Warner Bros. Discovery’s carriage arrangements with cable and satellite operators, who pay fees to carry its channels. The company would have to negotiate
its next round of deals for TNT and other channels without offering the NBA, at a time when such talks are increasingly contentious.

Despite strong continued growth for its direct-to-consumer streaming business, the first-quarter earnings picture for Warner Bros. Discovery was mixed. The company missed Wall Street’s expectations on revenue, which declined year-to-year by 7% to $9.96 billion. Analysts expected $10.2 billion.

The company posted a net loss of 40 cents a share, compared to 24 cents a year ago.

The direct-to-consumer business added 2 million subscribers in the third quarter. Streaming ad revenue grew 70%.

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Sales for its linear TV networks, which include TNT, CNN and Discovery, fell 8% to $5.13 billion. Soft demand for TV commercials pushed ad revenue down by 11%.

The company’s studio division saw a 13% year-to-year drop in revenue to $2.82 billion. Zaslav cited the delay in the movie pipeline due to last year’s work stoppages by writers and actors. The unit was also hurt by the poor box office performance of “Suicide Squad.”

Zaslav said the company is dedicated to improving the studio’s performance by taking advantage of its existing film franchises such as “Harry Potter.” He said the studio has begun script development on a new “Lord of the Rings” film, produced by Peter Jackson.

Warner Bros. Discovery announced Wednesday that will offer consumers its Max streaming service in a bundle with Disney’s Hulu and Disney+. The package will be available in the U.S. starting this summer and can be purchased through any of the three streaming platforms’ websites.

Zaslav said the new offering will increase retention of subscribers. Pricing has not been disclosed.

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Warner Bros. Discovery’s stock traded slightly higher Thursday morning at $8.02 a share.

Movie Reviews

Miyamoto says he was surprised Mario Galaxy Movie reviews were even harsher than the first | VGC

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Miyamoto says he was surprised Mario Galaxy Movie reviews were even harsher than the first | VGC

Nintendo’s Shigeru Miyamoto says he’s surprised at the negative critical reception to the Super Mario Galaxy Movie.

As reported by Famitsu, Miyamoto conducted a group interview with Japanese media to mark the local release of The Super Mario Galaxy Movie.

During the interview, Miyamoto was asked for his views on the critical reception to the film in the West, where critics’ reviews have been mostly negative.

Miyamoto replied that while he understood some of the negative points aimed at The Super Mario Bros Movie, he thought the reception would be better for the sequel.

“It’s true: the situation is indeed very similar,” he said. “Actually, regarding the previous film, I felt that the critics’ opinions did hold some validity. “However, I thought things would be different this time around—only to find that the criticism is even harsher than it was before.

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“It really is quite baffling: here we are—having crossed over from a different field—working hard with the specific aim of helping to revitalize the film industry, yet the very people who ought to be championing that cause seem to be the ones taking a passive stance.”

As was the case with the first film, opinion is divided between critics and the public on The Super Mario Galaxy Movie. On review aggregate site Rotten Tomatoes, the film currently has a critics’ score of 43% , while its audience score is 89%.

Shigeru Miyamoto says he was surprised by Mario Galaxy Movie reviews.

While this is down from the first film’s scores (which were 59% critics and 95% public) it does still appear to imply that the film’s target audience is generally enjoying it despite critical negativity.

The negative reception is unlikely to bother Universal and Illumination too much, considering the film currently has a global box office of $752 million before even releasing in Japan, meaning a $1 billion global gross is becoming increasingly likely.

Elsewhere in the interview, Miyamoto said he hoped the film would perform well in Japan, especially because it has a unique script rather than a simple localization as in other regions.

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“The Japanese version is a bit unique,” he said. “Normally, we create an English version and then localize it for each country, but for the first film, we developed the English and Japanese scripts simultaneously. For this film, we didn’t simply localize the completed English version – instead, we rewrote it entirely in Japanese to create a special Japanese version.

“So, if this doesn’t become a hit in Japan, I feel a sense of pressure – as the person in charge of the Japanese version – to not let [Illumination CEO and film co-producer] Chris [Meledandri] down.

“However, judging by the reactions of the audience members who’ve seen it, I feel that Mario fans are really embracing it. I also believe we’ve created a film that people can enjoy even if they haven’t seen the previous one, so I’m hopeful about that as well.”