Warner Media: The Company Analysis

Subject: Company Analysis
Pages: 2
Words: 666
Reading time:
3 min
Study level: College

Introduction

Warner Media is an American multinational media and entertainment corporation. AT&T holdings include Turner Broadcasting, Warner Bros, HBO, Discovery, and Cinemax, among others (“AT&T’s WarnerMedia and Discovery,” 2021). It employs over 25,000 workers and managers, and its total assets are valued at over 70 billion dollars (Sigismondi, 2019). As such, it is one of the largest multimedia corporations in the world. The purpose of this analysis is to evaluate the company’s internal strengths and weaknesses, external market opportunities and threats, as well as present situations and future prospects. While Warner Media’s current situation and position is stable, its future will be dependent on how well it adapts to emerging types of media.

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SWOT

Strengths

Warner Media enjoys a strong financial position, which is steady and growing. Some of their internal strengths include a long legacy and a brand name, which existed for almost 100 years, being a globally-acclaimed media company, and having a large portfolio of movies, TV shows, and entertainment (“Warner Bros,” 2021). The company has access to top-of-the-line production facilities and has contracts with many digital services, production companies, and individual world-known actors and directors (Gamble et al., 2016). These capabilities enable very strong performance, especially in the domestic market.

Weaknesses

Some of the internal weaknesses of Warner Media involve inefficiencies associated with being a large media company. It is relatively slow to adapt to change, and large-scale operations reduce the quality of oversight. Namely, the company is currently embroiled in a few sex scandals, which were disclosed during the emergence and popularization of the #MeToo movement (“Warner Media LLC,” 2021). There are also several charges revolving around embezzlement and fraud, indicating that the company has become too big to police itself. Finally, it suffers from cronyism, where individuals with long standing and name are valued on the basis of their past merits rather than the quality of their ideas (“Warner Media LLC,” 2021). This reduces the quality of the products they provide.

Opportunities

The consumption of cinema and digital media is increasing worldwide, offering excellent external opportunities for the company. Investing in successful franchises that already exist, as well as generating new ones by sponsoring and promoting the Netflix series would help expand and get a better hold on the market (“Warner Media LLC,” 2021). Investment in digital distribution capabilities and other technological changes could allow for Warner Media to maintain dominance (“Warner Media LLC,” 2018).

Threats

Some of the external threats to Warner Media are associated with the changing of times, which may damage some of the company’s revenue flows. Namely, DVD sales are in an all-time decline, and TV programs are also falling out of favor due to digital and internet availability (“Warner Media LLC,” 2021). This, in addition to increasing operational costs, makes certain cash streams less profitable than they used to be. In addition, piracy remains a significant factor, as it prevents the company from receiving additional revenue from customers that refuse to pay for the products.

Current and Future Prospects

Warner Media currently has a solid foothold on its share of the market, a strong brand name, and the opportunity to deliver extremely successful media products and services. Due to their rich portfolio of products, it is unlikely for them to lose their edge quickly. Future prospects for the company may involve tapping into the new markets of emerging media entertainment, such as VR and gaming. Their foothold in these industries, however, is not as strong as in the media and cinema industry, and will require investment and expertise to be successful.

Conclusions

Warner Media’s current position is exceptionally strong, with moderate to strong change of maintaining it and capitalizing on advantages in the future. It has plenty of resources and a dominant position in the domestic marker. Its weaknesses revolve around being too big to properly manage and control, and being vulnerable to PR threats. The company will have to make a successful transition to emerging forms of media to stay on top of their competition.

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References

AT&T’s WarnerMedia and Discovery, Inc. creating standalone company by combining operations to form new global leader in entertainment. (2021). Web.

Gamble, J., Thompson, A., Peteraf, M., & Ill, A. J. (2016). Crafting & executing strategy: The quest for competitive advantage: Concepts and cases (20th ed.). McGraw-Hill Education.

Sigismondi, P. (Ed.). (2019). World entertainment media: Global, regional and local perspectives. Routledge.

Warner Bros SWOT analysis, competitors, & USP. (2021). Web.

Warner Media LLC – Strategic SWOT Analysis Review. (2021). Web.

Warner Media LCC – Strategic SWOT analysis review. (2018). Web.