Skip to main content

Warner Bros. Discovery Experiences Subscriber Decline After Max Launch, but Streaming Revenue Grows



Warner Bros. Discovery faced a decline of 1.8 million subscribers in the three months following the launch of Max, their streaming service. However, this decline was not limited to Max alone, with the company's global subscribers across all services decreasing from 97.6 million to 95.8 million. Despite this, executives remain optimistic, attributing the dip to overlapping subscriber bases and anticipated churn. The company's streaming revenue, on the other hand, saw a 13 percent increase, reaching $2.73 billion this quarter. Let's delve deeper into Warner Bros. Discovery's recent developments and future plans.


Warner Bros. Discovery's Chief Financial Officer, Gunnar Wiedenfels, cited two main reasons for the subscriber decline. Firstly, there were overlapping subscriber bases between HBO Max and Discovery Plus. Secondly, the conclusion of the popular series, The Last of Us season 1, and the finale of Succession contributed to expected churn among subscribers.


Despite the subscriber dip, CEO David Zaslav expressed confidence in the company's streaming business, stating that they anticipate profitability in the US streaming market by the end of this year. He further revealed plans to launch Max internationally over the next year, while also enhancing the platform's capabilities for live programming.


The loss of subscribers did not adversely impact the company's streaming revenue, which experienced a significant boost, growing to $2.73 billion. Warner Bros. Discovery strategically replaced HBO Max with Max, bundling both HBO and Discovery Plus content in a single platform. The company introduced a new "Ultimate" plan with access to 4K content, alongside the existing $9.99 per month subscription, while Discovery Plus retained its standalone subscription priced at $4.99 per month.


Max's Potential Expansion and Incorporation of Live Programming:

Zaslav revealed the company's plans to expand Max to international markets and highlighted the platform's ability to deliver live programming. While details remain scarce, he hinted at the possibility of incorporating news and sports into Max. This move could potentially differentiate the platform and attract a wider audience.


Warner Bros. Discovery aims to exit the regional sports network business, planning to either sell or cease operations of its networks by year-end. The company currently airs local baseball, basketball, and hockey games through AT&T SportsNet channels.

The ongoing Hollywood strikes have had an impact on Warner Bros. Discovery's production efforts, resulting in "modest cash savings" this quarter. However, the company anticipates significant upside to its free cash flow going forward. The CEO stressed the importance of settling the strikes promptly, as the creative community's contributions are essential to telling great stories.

Warner Bros. Discovery may have experienced a decline in subscribers following the launch of Max, but the company remains focused on growth and expansion. The strategic bundling of content and potential incorporation of live programming could bolster Max's appeal. As the company aims to settle the Hollywood strikes, it continues to navigate challenges and seek opportunities for future success in the competitive streaming market.

Popular posts from this blog

AT&T Resets Millions of Customer Passcodes After Data Leak: What You Need to Know

AT&T recently confirmed a significant data breach affecting over 7.6 million current customers and 65 million former customers. The leaked information, which dates back to 2019 or earlier, includes personal details like names, addresses, phone numbers, and social security numbers. Fortunately, financial information and call history were not compromised. In response to the breach, AT&T has reset passcodes for affected customers. Passcodes, usually four-digit numbers, serve as an additional layer of security when accessing accounts. However, security experts warn that the encrypted passcodes leaked alongside customer information could be easily deciphered, posing a risk of unauthorized account access. Affected customers are advised to set up free fraud alerts with major credit bureaus and remain vigilant for any suspicious activity related to their accounts. AT&T is proactively reaching out to impacted customers via email or letter to inform them about the breach and the meas...

Signal Introduces Usernames for Encrypted Messaging: A Secure Way to Connect

Signal, the encrypted messaging service, is launching a new feature in the coming weeks: support for usernames. This beta feature allows users to establish unique usernames, enabling connections without divulging phone numbers. source: Signal Blog To create a username, navigate to your settings and select "Profile." Once you've chosen a unique username, generate a QR code or link to share with others. Recipients can connect by entering your username into the chat bar. Usernames can be changed at any time, though previous usernames may be claimed by others. Signal began testing usernames last fall. Unlike social media platforms, Signal usernames do not serve as logins or public handles. They offer a discreet means of communication without revealing personal phone numbers. While a phone number is required to register for Signal, sharing it is optional. Usernames remain private and do not appear on profiles or in chats unless shared explicitly. As Randall Sarafa, Signal'...

Wordpress.com is selling user data to AI companies

In September 2023, WordPress.com quietly updated a developer page about accessing a "Firehose" of around a million daily WordPress posts, clarifying that these feeds are intended for search engines, AI products, and market intelligence providers. This change, which was not previously noted, has sparked discussion, especially after revelations that Automattic, the owner of WordPress.com and Tumblr, plans to share user data with OpenAI and Midjourney. The recent buzz surrounds questions about which WordPress blogs are included, data retroactivity for opt-outs, and the lack of transparency from Automattic. This company has been selling access to post data for years, including through the Jetpack plugin, but has recently announced exclusions for select AI partners. Automattic's deals with OpenAI and Midjourney are particularly contentious as they aim to enhance generative AI tools. This data sharing, facilitated by partners like SocialGist and DataStreamer, offers insights in...