Warner Bros. Discovery (WBD) and Google parent company Alphabet (GOOGL) are partnering on an initiative aimed at enhancing closed captioning using artificial intelligence (AI).
The companies have created “caption AI,” an AI platform that generates closed captions for movies and TV shows based on what’s said on the screen. It is used with unscripted programming and differs from traditional closed captioning that relies on a script to subtitle films and television shows.
The goal of the initiative is to provide more closed captioning for streaming services such as Warner Bros. Discovery at a lower cost. The companies say the costs will be up to 50% less than typical closed captioning, and at speeds that are 80% faster.
WBD Stock Struggles
News of the new caption AI feature comes as WBD stock struggles, having declined nearly 30% so far this year. Warner Bros. Discovery is laboring under a hefty debt load that currently stands at more than $50 billion. The company also recently lost lucrative broadcast rights to the National Basketball Association (NBA), which was seen as a blow to the company.
On a more positive note, Warner Bros. Discovery recently signed a deal with Charter Communications (CHTR). Charter has agreed to pay more for access to Warner Bros. Discovery’s HGTV and Food Network content.
Is Warner Bros Discovery Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 10 Buy, six Hold and one Sell recommendations assigned in the last three months. The average WBD price target of $12.50 per share implies 51.79% upside potential.
