Warner Bros. Discovery announced on Thursday that their streaming platform, Max, gained 7.2 million new subscribers globally in the third quarter. This growth marked the largest increase in subscribers for the platform since its launch, bringing the total number of subscribers to 110.5 million as of Sept. 30. The expansion of Max internationally in the first half of the year has contributed significantly to this rapid growth.
The traditional TV networks of Warner Bros. Discovery have been facing challenges due to cord-cutting and a slow advertising market. In the last quarter, the company reported a $9.1 billion write-down on its TV networks. Despite this, the streaming business has emerged as a bright spot for Warner Bros. Discovery, with the revenue from the segment increasing by 8% to $2.63 billion. This growth was driven by an increase in global subscribers, higher advertising revenue, and global average revenue per user.
The overall revenue for Warner Bros. Discovery decreased by 4% to $9.62 billion compared to the same period last year. The total adjusted earnings before interest, taxes, depreciation, and amortization also dropped by 19% to $2.41 billion. The revenue from the TV networks segment rose by 3% to $5.01 billion, despite declines in distribution and advertising revenue. However, the studios segment revenue fell by 17% to $2.68 billion, primarily due to lower box office performances of certain movies.
While the focus on streaming profits has been increasing on Wall Street, media companies continue to report customer additions. Netflix added 5.1 million subscribers in the last quarter, bringing its total memberships to 282.7 million. However, starting in 2025, Netflix will no longer update investors on subscriber numbers as it shifts its focus to revenue and other financial metrics.
Comcast’s streaming platform, Peacock, added 3 million subscribers in the third quarter, reaching a total of 36 million. Disney reported a 1% increase in Disney+ Core subscribers, totaling 118.3 million. Disney’s Hulu also saw a 2% increase in subscribers, reaching 51.1 million. Paramount Global’s streaming division turned an unexpected profit, but Paramount+ lost 2.8 million subscribers due to ending a partnership deal.
In conclusion, Warner Bros. Discovery’s Max platform has shown significant growth in subscriber numbers, positioning itself as a key player in the streaming industry. Despite challenges in the traditional TV networks segment, the company’s focus on streaming has proven to be a successful strategy. The competition in the streaming market continues to intensify, with major players like Netflix, Disney, Comcast, and Paramount Global all vying for a larger share of the market.
