DTC subscribers increased YoY, reaching 103.3 million. Advertising revenue increased 98% and 86% for the three and six months ended June 30, 2024, respectively, primarily attributable to higher Max domestic engagement and ad-lite subscriber growth.

The company's restructuring program is expected to be substantially completed by the end of 2024, with anticipated pre-tax charges up to $5.3B. These efforts aim to achieve cost synergies post-merger.

Content revenue decreased 13% for both the three and six months ended June 30, 2024. The decrease for the three months ended June 30, 2024 was primarily attributable to lower volume of third-party licensing deals at DTC and a 27% decrease in television product revenue attributable to the timing of initial telecast productions and lower licensing revenue

Management continues to implement projects to achieve cost synergies following the merger, including strategic content programming assessments and organizational restructuring. These efforts are expected to yield significant savings.

Management is focused on growing the DTC business and improving its profitability, as evidenced by the increase in advertising revenue and subscriber growth. However, challenges remain in linear distribution.

The NBA has declined to renew its existing license agreement with the Company to distribute NBA games, which will expire at the end of the 2024-2025 NBA season. In July 2024, the Company exercised its contractual right under the license agreement to match any third-party offer to distribute NBA games received by the NBA and made an offer that was subsequently rejected by the NBA. On July 26, 2024, the Company filed a complaint against the NBA in the Supreme Court of the State of New York to enforce its contractual rights under the license agreement.

The WGA and SAG-AFTRA strikes in 2023 had a material impact on operations, including a pause on theatrical and television productions. While the strikes have ended, lingering effects on content delivery are noted.

The company faces significant competition to acquire and maintain licenses to produce sports programming, which leads to significant expenditure of funds and resources. For example, the NBA has declined to renew its existing license with the Company to distribute NBA games, which will expire at the end of the 2024-2025 NBA season.

The company continues to be involved in legal proceedings related to the merger, which could result in significant legal expenses and adverse outcomes. The Collinsville and Todorovski complaints were consolidated under case number 1:22-CV-8171, and on December 12, 2022, the court appointed lead plaintiffs and lead counsel. On February 15, 2023, the lead plaintiffs filed an amended complaint adding Advance/Newhouse Partnership, Advance/Newhouse Programming Partnership, Steven A. Miron, Robert J. Miron, and Steven O. Newhouse as defendants.

The company faces more intense competitive pressure from existing or new competitors in the industries in which they operate. The increase of digital advertising available in the marketplace has also resulted in, and is expected to continue to result in, increased competition for advertising expenditures for both traditional linear networks and ad-supported tiers in streaming services.

The company faces continued pressures on linear distribution and continued softness in the U.S. linear advertising market, which have had, and are expected to continue to have, a material impact on the operations and results of the Company, including a negative impact on the results of operations attributed to declines in linear advertising revenue.

The company's asset mix positions it to drive a balanced approach to creating long-term value for shareholders. It represents the full entertainment ecosystem, and the ability to serve consumers across the entire spectrum of offerings from domestic and international networks, premium pay-TV, streaming, production and release of feature films and original series, related consumer products and themed experience licensing, and interactive gaming.

The Company's ongoing restructuring and transformation initiatives includes, among other things, strategic content programming assessments, organization restructuring, facility consolidation activities, and other contract termination costs. While the Company's restructuring efforts are ongoing, this restructuring program is expected to be substantially completed by the end of 2024.

Selling, general and administrative expenses decreased 3% and 5% for the three and six months ended June 30, 2024, respectively, primarily attributable to lower overhead expenses and lower marketing costs due to the prior year launch of Max in the U.S.

Costs of revenues decreased 6% and 7% for the three and six months ended June 30, 2024, respectively, primarily attributable to lower content expense related to the amortization of purchase accounting fair value step-up for content.

The company is focused on developing and marketing its enhanced streaming service Max. The increase of digital advertising available in the marketplace has also resulted in, and is expected to continue to result in, increased competition for advertising expenditures for both traditional linear networks and ad-supported tiers in streaming services.

DTC subscribers increased YoY, reaching 103.3 million. Advertising revenue increased 98% and 86% for the three and six months ended June 30, 2024, respectively, primarily attributable to higher Max domestic engagement and ad-lite subscriber growth.

The company's success depends on its ability to develop and provide programming for new television and telecommunications technologies, and the success of our streaming services.

During the six months ended June 30, 2024, the Company repurchased or repaid $4,497 million of aggregate principal amount outstanding of our senior notes.

In May 2024, the Company sold its 50% interest in All3Media, an equity method investment, for proceeds of $324 million and recorded a gain of $203 million in other income (expense), net in the consolidated statements of operations (in millions).

We effected capital expenditures of $447 million during the six months ended June 30, 2024, including amounts capitalized to support Max. In addition, we expect to continue to incur significant costs to develop and market Max.

The provided 10-Q filing does not contain specific information about new ESG initiatives or updates on existing programs. Further review of other company communications would be needed to assess ESG performance.

Other headwinds in the industry, such as continued pressures on linear distribution and continued softness in the U.S. linear advertising market, have had, and are expected to continue to have, a material impact on the operations and results of the Company, including a negative impact on the results of operations attributed to declines in linear advertising revenue.

The company faces changes in, or failure or inability to comply with, laws and government regulations, including, without limitation, regulations of the Federal Communications Commission and similar authorities internationally and data privacy regulations and adverse outcomes from regulatory proceedings.

The company's performance is subject to general economic and business conditions, fluctuations in foreign currency exchange rates, global events such as pandemics, and political unrest in the international markets in which we operate.