Should WarnerMedia prioritize expanding DC Comics' cinematic universe or focus on developing new original IP for its streaming services?

Introduction

The trade-off between expanding DC Comics' cinematic universe and developing new original IP for streaming services presents a critical strategic decision for WarnerMedia. This scenario involves balancing established franchises with potential new revenue streams. I'll analyze this trade-off by examining product understanding, metrics, experimentation, and decision frameworks to provide a comprehensive recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking streaming subscriber growth might be slowing. Could you share our current subscriber growth rate compared to industry averages?

Why it matters: Helps determine if we need to focus on retention or acquisition Expected answer: Growth rate is below industry average Impact on approach: Would prioritize original IP to differentiate and attract new subscribers

• Considering our content portfolio, I'm assuming DC Comics has a significant fan base. What percentage of our streaming viewers regularly engage with DC content?

Why it matters: Indicates the potential impact of expanding the DC universe Expected answer: 30-40% of viewers regularly watch DC content Impact on approach: High engagement would support expanding DC universe

• Looking at production costs, I'm guessing original IP development might be more cost-effective initially. Can you provide a ballpark comparison of average production costs for DC films versus new original series?

Why it matters: Helps assess ROI potential for each option Expected answer: DC films cost significantly more upfront Impact on approach: Lower initial costs for original IP could allow for more diverse content experimentation

• Regarding our global expansion strategy, I'm thinking international markets might respond differently to DC versus original content. How does DC content perform in our key growth markets compared to original productions?

Why it matters: Informs content strategy for different regions Expected answer: Varied performance across markets Impact on approach: Might suggest a balanced approach or region-specific strategies