Warner Bros. Discovery Sees Subscriber Growth with Max Streaming Service

A sign outside of the Warner Brothers Discovery Techwood Turner Broadcasting campus is seen on June 26, 2024 in Atlanta, Georgia.

Warner Bros. Discovery announced on Thursday that it has gained 6.4 million new global streaming subscribers in the fourth quarter, bringing its total to 116.9 million subscribers for its services.

For the streaming segment, which includes its flagship service Max, the fourth-quarter revenue reached $2.65 billion. This is a 5% increase compared to the $2.53 billion reported during the same quarter last year. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for this unit stood at $409 million, a significant recovery from an adjusted EBITDA loss of $55 million in the fourth quarter of 2023.

In a letter to shareholders, the company estimated that adjusted EBITDA for its streaming division will reach $1.3 billion this year, nearly doubling the $677 million reported in 2024. WBD highlighted its strategy to grow its subscriber base, with a target of reaching 150 million global subscribers by the end of 2026. Plans for expansion include the launch of Max on Sky television services in the United Kingdom and Ireland in the second quarter of 2026, as well as introductions in Germany and Italy in the first quarter of the same year.

Additionally, the company confirmed that Max will continue to offer its B/R Sports and CNN content at no extra charge for subscribers in its standard and premium service tiers, despite previous intentions to implement additional fees for sporting events. However, both offerings will be removed from the basic ad-supported tier starting March 30.

WBD's overall revenue for the fourth quarter decreased by 2%, totaling $10.03 billion compared to $10.28 billion from the same quarter last year. For the full year of 2024, revenue reached $39.32 billion, representing a 5% decline from $41.32 billion in 2023.

In terms of losses, Warner Bros. Discovery recorded a net loss of $494 million for the fourth quarter, translating to a loss of 20 cents per share, a loss that is higher than the $400 million (16 cents per share) lost in the fourth quarter of 2023. Revenue from TV networks dropped to $4.77 billion from $5.04 billion during the same period. Furthermore, the company had reported a write-down of $9.1 billion for its networks division in its second-quarter earnings for 2024. The letter to shareholders indicated that WBD anticipates continued declines in cable subscribers and recognizes that the advertising market for U.S. linear television is deteriorating faster than expected.

On a more positive note, fourth-quarter revenue for the studios business was $3.66 billion, showing a 15% increase from the $3.17 billion reported in the fourth quarter of 2023.

This story is still developing, and updates will follow.

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