WBD · 10-Q · 2026Q2 · Full report

Content Licensing Trends

Warner Bros. Discovery, Inc. · 2026-08-06 · Importance 59 · Surprise 74 · Contradicted

Studios content revenue declined 41% in the second quarter and 13% in the first six months of 2026, primarily due to lower theatrical and television product revenue. The current theatrical slate underperformed the prior-year releases of A Minecraft Movie, Sinners, and Final Destination Bloodlines, resulting in theatrical product revenue declines of 46% for the quarter and 21% year to date. Games revenue increased 45% in the quarter and 9% year to date, primarily following the release of LEGO Batman: Legacy of the Dark Knight. Television product revenue was also affected by the timing of intercompany licensing renewals, partly offset by higher third-party television content sales and international HBO Max launch licensing.

Key facts

• During the six months ended June 30, 2026 content rights amortization and impairment: $5,088 million. source
• Film and television content rights and games at June 30, 2026: $19,245 million. source
• Total content amortization for three months ended June 30, 2026: $2,515 million and for six months ended June 30, 2026: $4,972 million. source
• The arrangement among TNT Sports, CBS, and the NCAA provides rights to the NCAA Tournament in the U.S. through 2032 with aggregate programming rights fee, production costs, certain advertising revenues and sponsorship revenues shared equally by the Company and CBS, and the amount recorded pursuant to the loss cap was $ million during the six months ended June 30, 2026 and $ million during the six months ended June 30, 2025. source
• Total film and television content rights and games (alternate table) at June 30, 2026: $19,712 million (total line shown as 19,712 in that table). source
• Total production costs predominantly monetized individually at June 30, 2026: Released, less amortization $3,061 million; completed and not released $1,276 million; in production and other $2,092 million; total production costs $6,103 million. source
• WBD’s aggregate programming rights and production costs sharing with CBS for the NCAA Tournament includes a CBS shortfall cap limiting CBS’ share of any shortfall to a specified annual cap. source
• The filing identifies the strikes of the Writers Guild of America ("WGA") and Screen Actors Guild-American Federation of Television and Radio Artists ("SAG-AFTRA") in 2023 as an example of an industry-wide strike that could affect production. source

Impact estimates