Streaming Services See Significant Growth in Q3
Warner Bros. Discovery’s streaming platform, Max, has reported a massive surge in subscribers, adding 7.2 million globally in the third quarter. This marks the largest quarterly growth for the platform since its launch, bringing the total subscriber count to 110.5 million as of September 30.
Max Leads the Way in Streaming
Max has been expanding rapidly internationally, driving its subscriber base to new heights. This growth has been a beacon of hope for Warner Bros. Discovery, as its traditional TV networks face pressure from cord-cutting and a soft advertising market. In fact, the company reported a $9.1 billion write-down on its TV networks last quarter.
Q3 Results: Revenue Down, but Streaming Shines
Warner Bros. Discovery’s third-quarter results showed revenue decreasing 4% to $9.62 billion compared to the same period last year. Total adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 19% to $2.41 billion. However, the studios segment revenue dropped 17% to $2.68 billion, largely due to lower box office performances.
Streaming Revenue on the Rise
On a brighter note, the streaming business’s revenue increased 8% to $2.63 billion, driven by a surge in global subscribers, higher advertising revenue, and global average revenue per user. Adjusted EBITDA for the segment rose to $289 million, a significant increase of $178 million compared to last year.
Industry-Wide Growth
Warner Bros. Discovery isn’t the only streaming service seeing significant growth. Netflix reported 5.1 million subscriber additions during the quarter, beating Wall Street expectations. Comcast’s Peacock added 3 million subscribers, while Disney’s Disney+ Core subscribers increased by 1% to 118.3 million. Paramount Global’s streaming division also swung to an unexpected profit last quarter.
A Shift in Focus
As the streaming industry continues to evolve, companies are shifting their focus from subscriber growth to revenue and other financial metrics as performance indicators. Beginning in 2025, Netflix will no longer update investors on its subscriber numbers, marking a significant change in the way the industry reports its performance.
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