Warner Bros. Discovery's Record-Breaking Subscriber Increase on Max

Warner Bros. Discovery announced a significant milestone on Thursday, revealing that its streaming service, Max, attracted an impressive 7.2 million new global subscribers during the third financial quarter.

This quarter marked unprecedented growth for the platform since its launch, elevating its total subscriber count to 110.5 million by the end of September. The surge in Max's user base has been notable this year, buoyed by its expansion into international markets during the first half of the year.

Amidst challenges faced by traditional television networks, including the decline due to the cord-cutting trend and a weak advertising environment, the streaming sector has emerged as a beacon of success for Warner Bros. Discovery. The company previously reported a significant $9.1 billion impairment on its television networks.

The company's financial report on Thursday indicated a 4% slide in revenue, totaling $9.62 billion, compared to the identical quarter last year. Adjusted earnings, considering interest, taxes, depreciation, and amortization, dropped by 19% to hit $2.41 billion.

Despite reductions in distribution and advertising income, the TV networks' revenue experienced a modest 3% rise to $5.01 billion. Conversely, revenue from the Studios segment decreased by 17% to $2.68 billion, with theaters contributing 40% less as hits like "Beetlejuice Beetlejuice" and "Twisters" failed to match last year's "Barbie."

However, Max's streaming business showed an 8% increase in revenue, reaching $2.63 billion due to a hike in global subscriber numbers, enhanced advertising revenue, and improved global average revenue per user. Adjusted EBITDA for this segment was $289 million, showcasing a $178 million year-over-year improvement.

Trends in Subscriber Additions Across Streaming Platforms

Despite Wall Street's shifting focus towards streaming profitability over merely adding subscribers, several media entities have continued to report subscriber gains this quarter.

In October, a prominent contender in the streaming space reported an addition of 5.1 million subscribers, primarily driven by its ad-supported model, exceeding expectations set by Wall Street. This brought the company’s total memberships to 282.7 million.

However, starting from 2025, the platform plans to discontinue updating its investors on subscriber counts, choosing instead to emphasize revenue and other fiscal metrics as indicators of success.

Another streaming platform capitalized on the Paris Summer Olympics, signing up an additional 3 million subscribers in its third quarter, resulting in a total subscriber base of 36 million at the end of September.

Meanwhile, reports in August highlighted Disney+ Core's 1% rise to 118.3 million subscribers, notwithstanding the challenges forecasted for the third fiscal quarter. This growth excludes figures from Disney+ Hotstar in India and nearby regions.

Disney's Hulu saw subscriber growth of 2%, reaching 51.1 million. Disney is projected to release its next earnings news on November 14.

The streaming sector achieved an unexpected profit last quarter, although Paramount+ experienced a subscriber decline of 2.8 million, lowering its total to 68 million due to the dissipation of a partnership in Korea. Paramount is scheduled to disclose its quarterly results on Friday.