Warner Bros. Discovery (WBD) faces a challenging outlook as its recent earnings call revealed underperformance in key areas and a cautious approach to future projections. CEO David Zaslav highlighted the underperformance of the movie studio, particularly with 'The Color Purple' and 'Aquaman and the Lost Kingdom' failing to meet box office expectations. CFO Gunnar Wiedenfels admitted to industry-wide challenges, especially in the superhero genre, and emphasized the need for further work and opportunities for growth. Despite these setbacks, Zaslav announced a planned sports streaming service in collaboration with Disney and Fox, which could be bundled with WBD's Max streaming service, which also includes content licensing revenue to third parties. This move aims to enhance viewer convenience and address the streaming market's competitive landscape. However, WBD's stock opened at an all-time low following the call, reflecting investor concerns over the company's financial guidance, with the stock down 9% premarket and no FCF guidance provided, and profitability outlook. The earnings call also touched on efforts to boost free cash flow, with Zaslav's bonus tied to this metric, but faced skepticism over the company's ability to achieve significant growth in this area.