A special Le Trois, The Three and El Tres and TMT Research newsletter.
One topic: the technology side of the AT&T (WarnerMedia) and Discovery channel merger.
Mistakes are mine:
- Cloud: both use AWS. That will be easy to integrate. Don’t be surprised if Discovery uses this to get the monthly price down. Here’s the link to Discovery’s AWS cloud. The other? WarnerMedia
- Research: Discovery needs to keeps the WarnerMedia team. Why? Without research, you’re going to lose (you can’t depend on your vendors to create this for you because most of the time, it won’t work. That’s why you need your in house team to do this). Look at the number of patents from WarnerMedia versus Discovery Channel (there’s none from the Discovery Channel)
- Engineering/software development: this is where you write the code to help your viewers find the shows etc they want to watch. Office wise, some overlap in the US (Washington State, New York), Asia (India, Singapore) and UK. For Asia and EU operations, there could be a shift from high cost countries to lower cost ones. For the rest? You can join the offices together
- Master control rooms: is there a need for two of them? One in Sterling, VA (Discovery’s master control room)? The other in Techwood in Atlanta, GA (WarnerMedia’s operations are here)? Do you keep them separate? Or join them together to save money because you can lower the technology costs?
- WarnerMedia Innovation Lab: I wouldn’t be surprised if AT&T kept this. It’s an excellent way to showcase their technology to clients.
It’s an interesting time in the entertainment industry. Technology will be the key so you can become more competitive.