Warner Bros. Discovery Added Record 7.2 Million Quarterly Streaming Subs, Operating Profit Increased to $289 Million
November 7, 2024
Warner Bros. Discovery Nov. 7 reported an increase of 7.2 million direct-to-consumer streaming subscribers in the third quarter (ended Sept. 30) — the highest quarterly growth since the launch of the Max SVOD service.
Global DTC subscribers now top 110.5 million when combining Discovery+, HBO pay-TV, HBO Max, Max, or other premium sports-related subscription service such as Eurosport.
In the quarter, WBD inked a multiyear renewal of the Charter carriage agreement for the entire suite of WBD cable networks and the inclusion for the first time of the Max streaming service across all Spectrum TV Select packages.
DTC revenue increased 9% to more than $2.6 billion from $2.43 billion in the previous-year period, driven by a 15% increase in subscribers, as well as higher subscription pricing following the launch of Max in Latin America and Europe, and partially offset by continued domestic linear wholesale subscriber declines.
The business segment reported pre-tax operating income of $289 million, a $178 million increase from the prior year, while still absorbing a $41 million loss from the broadcast of the Paris Olympics in Europe.
“Max delivered … healthy subscriber-related revenue growth and meaningful progress toward achieving our 2025 DTC segment financial objectives,” WBD CEO David Zaslav said in a statement.
Speaking on the fiscal call, Zaslav welcomed the pending Trump Administration, suggesting the new government would be less restrictive toward industry consolidation and mergers and acquisitions.
“It may offer … an opportunity for consolidation that may be quite different, that would provide a real positive and accelerated impact on this industry that’s needed,” Zaslav said. “If the best content is going to win, there needs to be some consolidation in order to have these businesses be stronger and have a better consumer experience.”
Whether that means WBD acquiring or selling to third-party media assets remains to be seen.
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