Warner Bros. Discovery's Streaming Success Overshadowed by Q4 Warning Signs

Warner Bros. Discovery's fourth-quarter earnings report showed enviable free cash flow and progress in reducing heavy debt, but a 10% slide in share price reflected surprise at year-over-year declines in revenue and earnings at its studio and linear networks divisions. CEO David Zaslav acknowledged ongoing challenges in the pay TV and linear advertising ecosystems, while emphasizing the company's focus on building its streaming service Max and deploying creative assets. Despite narrowing losses for Max and prudent financial management, concerns remain about the studio's performance and the company's ability to offset declines in linear revenue. The company is also banking on international growth and a new sports venture to improve its streaming fortunes.