Warner Bros. Discovery CEO David Zaslav has emphasized the importance of free cash flow generation for the company, with the announcement that it ended the year with $6.2 billion in free cash flow, marking an 86% increase from the previous year. However, despite Zaslav's efforts to highlight the company's financial health, Warner Bros. Discovery's shares experienced a significant drop of 10% on Friday and have seen a decrease of about 45% over the past year.

Investors seem unconvinced by the company's emphasis on free cash flow, as they were disappointed by Warner Bros. Discovery missing analyst estimates for revenue and profit, leading to the stock decline. Zaslav has been vocal about prioritizing free cash flow to enhance the company's financial position and reduce debt, with Warner Bros. Discovery having paid down $12.4 billion in debt since the merger of Discovery and WarnerMedia.

Although Zaslav reiterated the company's commitment to boosting free cash flow and reducing debt during the earnings call, investors remain skeptical, with some concerns arising about the lack of guidance for free cash flow generation in 2024. The change in Zaslav's compensation structure to tie his bonus to cash flow generation reflects the board's focus on financial metrics.

Despite Zaslav's efforts to shift investor focus to free cash flow, the market seems to prioritize other growth indicators, such as streaming service subscriber additions, profit, and revenue. The company's stagnant performance in the past year has raised doubts about the effectiveness of solely concentrating on free cash flow as a catalyst for shareholder value.

Overall, Warner Bros. Discovery's persistent focus on free cash flow has yet to resonate with investors, who remain cautious about the company's growth prospects amidst a changing media landscape.