Warner Bros. Discovery (WBD) shares continue to fall at the start of Thursday’s trading session as investors digest the media giant’s second quarter revenue miss and $9.1 billion write-down of its cable networks. The multi-billion dollar impairment charge widened WBD’s adjusted losses for the quarter to $4.07 per share.

The Morning Brief welcomes MoffettNathanson senior research analyst Robert Fishman to talk about Warner Bros. Discovery’s challenges in navigating the potential loss of its NBA streaming rights deal and what premium content from Max (formerly HBO Max) represents to subscribers.

“Clearly, they’re doing a lot to try to capture as much sports rights out there from others to to help offset the the potential loss of the NBA,” Fishman explains to Yahoo Finance. “But in our opinion, it’s still not likely to be enough. So there will be pressure on future affiliate fee negotiations that come up as early as the end of this year or into next year for the Turner portfolio, Discovery’s at the end of this year.”

He says there’s “lots of different moving pieces” at play when trying to find potential upsides to this scenario.

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This post was written by Luke Carberry Mogan.