Now Streaming: Warner Bros. lays off 10% of Motion Picture Group staff

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among this weekend’s most notable new streaming content is Apple TV+ (AAPL) historical drama series “Chief of War,” starring Jason Momoa. Meanwhile, Netflix (NFLX) subscribers can watch new sitcom “Leanne,” based on the comedy of Leanne Morgan, while Peacock (CMCSA) subscribers can watch the new season of action series “Twisted Metal,” based on the PlayStation (SONY) video game franchise of the same name. Additionally, Disney+ (DIS) users can catch new Marvel animated series “Eyes of Wakanda,” set in the “Black Panther” universe.

PARAMOUNT: This week, Paramount (PARA) released its results for the second quarter, reporting Q2 adjusted earnings per share that beat consensus estimates while revenue came in slightly below. DTC revenue grew 15% year-over-year in the period, driven by Paramount+ revenue jumping 23%.

“Our goal when we became co-CEOs was to transform Paramount into a streaming first company and today we are substantially better positioned with streaming revenue growth outpacing linear declines, driven by exceptional performance at Paramount+,” said co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins. “We saw the largest viewership growth among all subscription services in the US, up 26% vs. the first half of 2024, driven by continued strong content at Paramount+ where we again had the most Top 10 SVOD Originals, behind only the market leader, and churn achieved a record low. CBS content drove nearly half of all viewing on Paramount+ and ranked as the most watched broadcast network for the 17th consecutive season. These impressive results are thanks to our talented teams and creative partners for whom we are very grateful for their continued creativity, dedication and hard work.”

On its quarterly call, the company noted that it would not provide forward-looking guidance or host a question and answer session with analysts due to the upcoming merger with Skydance Media.

COMCAST: Meanwhile, Comcast also reported Q2 results on Thursday, with both adjusted EPS and revenue beating Wall Street estimates. Of note, Peacock revenue rose 18% year-over-year to $1.2B, while Peacock EBITDA losses of $101M improved by $247M compared to the prior year period.

Following the report, Barclays lowered the firm’s price target on Comcast to $34 from $35 and kept an Equal Weight rating on the shares following the Q2 report, saying that Comcast cable expectations have been reset to more realistic levels relative to Charter but could have downside unless revenue trends stabilize. Meanwhile, UBS cut its target on Comcast to $36 from $40 with a Neutral rating, saying it expects higher investment to drive 1%+ connectivity EBITDA declines in Q3 while content EBITDA growth improves in Q3 with better parks, but reverses in Q4 as NBA rights amortization begins.

ROKU: Roku (ROKU) also reported quarterly results this week, with Q2 EPS and revenue exceeding consensus estimates and Platform revenue jumping 18% year-over-year. Looking ahead, Roku provided Q3 revenue guidance that is above current consensus and raised its FY25 adjusted EBITDA outlook.

Following the report, no fewer than 11 securities analysts raised their price targets on the stock, with Wedbush raising its target on Roku to $110 from $100 with an Outperform rating. The firm notes Roku reported a solid Q2 beat and raised its 2025 EBITDA guidance, emphasizing its focus on profitable expansion. While Roku is not immune to the impact of tariffs this year, it can more than offset this with platform growth driven by revenue diversification, expanding DSP partnerships, growing ad inventory, and improving content recommendations, Wedbush adds.

Additionally, UBS analyst John Hodulik raised the firm’s price target on Roku to $95 from $72 and reiterated a Neutral rating on the shares. While tariff and ad concerns have eased and estimates are revised higher, UBS believes the risk reward looks balanced.

WARNER BROS. DISCOVERY: On Monday, Warner Bros. Discovery (WBD) announced corporate names and senior leadership appointments for when the company separates in mid-2026. “Streaming & Studios,” which will be home to Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max and Warner Bros. Gaming Studios, as well as their film and television libraries, will be called Warner Bros. “Global Networks,” which will include entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., Discovery, and top free-to-air channels across Europe as well as digital products such as the Discovery+ streaming service and Bleacher Report will be called Discovery Global.

Meanwhile, Variety reported this week that the Warner Bros. Motion Picture Group is enacting a round of layoffs that will see jobs cut across its marketing, production strategy, operations and theater ventures divisions. Roughly 10% of the studio’s workforce will be impacted, sources say. The move comes as Warner Bros. Discovery, the studio’s parent company, is preparing to split itself in two. The new publicly traded companies will be Warner Bros., which will include the film division as well as the TV studios and streaming operations, and Discovery Global, which will be comprised of TV networks, Discovery+ and other assets, the report noted.

NETFLIX/PIPER: Piper Sandler told investors in a research note this week that a look at Nielsen Top 10 Viewership data shows Netflix had a “clear” inflection in June following a five-month slide. The firm is bullish on the company’s viewership, noting the content slate for 2H of 2025 appears “strong” with the return of several “highly anticipated” titles.

STOCK PLAYS: Other publicly traded companies in the space include FuboTV (FUBO), Amazon (AMZN), AMC Networks (AMCX), and Fox Corporation (FOX).