Warner Bros. Discovery’s streaming service, Max, gained 7.2 million new subscribers between July and September of 2024. This is a huge increase for the company. The platform added the largest number of new users in a single quarter since it first launched. By the end of September, Max had a total of 110.5 million subscribers.
One of the main reasons for this significant increase in new subscribers is that Max expanded to more countries around the world earlier in the year. By reaching more people globally, Max has been able to attract many new viewers, which shows that it is becoming more popular and appealing to people worldwide.
In a crowded market with lots of streaming options, Max’s success in adding so many subscribers highlights its growing popularity and its strong position against competitors.
Record Quarterly Growth and Expanding International Reach
Max’s recent boost in subscribers was due to several factors. However, it partly happened because the platform expanded to more countries. Because Max went international, it is now available to people all around the world. It is no longer just available in the U.S., where most people already have access to it.
For streaming services like Max, moving into new countries is a smart way to get more subscribers. Due to the fact that the U.S. market is getting full, and there are not as many new customers left to add, expanding to other countries is the right thing to do.
Having a global reach means that Max can appeal to people from different cultures. They can do this by offering a variety of shows and movies that many people enjoy, regardless of where they live. Also, Warner Bros. Discovery has been trying to adapt its content to fit local preferences.
This means it might add subtitles or dub shows in local languages. It might also feature popular actors from specific regions. This strategy has been working well for Max. It has helped it attract more users outside of the U.S. and added to its subscriber growth this quarter.
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Warner Bros. Discovery Stock Rises Following Streaming Success
When Warner Bros. Discovery announced the expansion and new subscribers Max recorded, it had a significant impact on its stock, going up by 10%. This rise shows that investors have confidence in Warner Bros. Discovery’s streaming business, seeing its growth as a positive sign for the company.
Max’s success has been especially helpful for Warner Bros. Discovery. This is because other parts of the business, like its regular TV channels, have not been performing so well. Many people are choosing to watch shows online instead of through traditional cable.
Due to this shift in consumer demand, the company’s TV networks are earning less money than they used to from ads. Since investors are focusing more on how media companies succeed online, Max came as an answered prayer. The streaming service’s growth is making Warner Bros. Discovery stand out as a strong competitor in the streaming world.
Q3 Financial Highlights: Revenue and Earnings Changes
In the third quarter of 2024, Warner Bros. Discovery made $9.62 billion in revenue. This is the total amount of money it brought in from its different businesses. However, this amount is 4% less than what it made in the same time period in 2023.
Also, the company’s earnings before interest, taxes, depreciation, and amortization, which is often called EBITDA, went down by 19%. All the earnings came in at $2.41 billion. EBITDA is a way of measuring the company’s core profits before some of the costs and adjustments. This year’s drop shows that they did not make as much profit as they did compared to last year.
Despite these decreases, Warner Bros. Discovery still made a profit. The company ended the quarter with an actual profit of $135 million. This amount is about 5 cents per share. This was a big improvement compared to the third quarter of 2023 when the company lost $417 million.
This profit increase suggests that the decision that Warner Bros. Discovery made was a good one. The company’s decision to cut costs and focus more on its streaming business is starting to pay off. Even though not every part of the business made more money, the changes helped improve their financial situation overall.
TV Networks Revenue Holds Despite Advertising and Distribution Declines
Traditional TV networks, like those owned by Warner Bros. Discovery, are facing challenges because more people are choosing streaming services over cable TV.
Many viewers are “cutting the cord.” This means they are canceling their cable subscriptions and going for streaming options like Netflix, Hulu, or Max. This shift in consumer preference has led to a significant reduction in revenue from ads and from distributing TV channels, as fewer people watch traditional TV.
Despite these issues, Warner Bros. Discovery’s TV networks still managed to make more money in the third quarter. This growth shows that, even with the popularity of streaming, the company’s TV channels are still holding strong. It highlights how Warner Bros. Discovery is adapting and keeping its traditional TV business steady, even as the industry changes.
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Studio Revenue Decreases With Weaker Box Office Performance
Despite the favorable third quarter report, Warner Bros. Discovery earned less money from its movie studio division. The company earned $2.68 billion, 17% less than the same period the year before.
This reduction happened because their recent movies did not bring in much revenue. The movies Beetlejuice Beetlejuice and Twisters did not do as well in theaters compared to big hits like Barbie in 2023. In fact, the money they made from theaters fell by 40%, even when the changes in currency values across countries are not counted.
The major reason for this decrease is the shift in consumer preference or demand. Since many people now prefer watching movies at home on streaming platforms instead of going to theaters, studios like Warner Bros. Discovery are starting to look for a good balance between releasing movies in theaters and making them available on streaming services. When they do it this way, they can reach audiences who want both options.
Competitor Updates: Netflix, Peacock, Disney+, Hulu, and Paramount+
Warner Bros. Discovery’s success with Max is happening in an industry that is very competitive in terms of streaming services. Other major platforms are also gaining more subscribers in the industry.
Netflix gained 5.1 million new subscribers in the third quarter of 2024. This growth was partly because of its ad-supported plan. The plan made Netflix cheaper for some people to join.
Netflix now has 282.7 million memberships in total. However, starting in 2025, Netflix will stop sharing its subscriber numbers and focus on how much money it is making instead.
Peacock, another streaming service from Comcast, also gained new subscribers. It added 3 million new subscribers in the third quarter, bringing its total to 36 million. The growth at Peacock was boosted by the Summer Olympics, which were held in Paris. The event attracted many viewers to the platform.
Disney also saw some growth in its streaming services. Subscribers for Disney+ Core, the main part of Disney+, grew by 1%, bringing the total number of subscribers to 118.3 million. On the other hand, Hulu gained 2% more subscribers, bringing its total subscribers to 51.1 million. Disney’s streaming services are growing steadily. However, they are not increasing as quickly as some other platforms.
Paramount Global’s Paramount+ actually lost 2.8 million subscribers in the third quarter. This was mostly because Paramount ended a partnership deal in Korea, which meant some subscribers were removed. However, Paramount’s streaming platform still managed to make a profit last quarter. This shows that it is getting better at controlling its expenses.
Ultimately, each streaming platform has its own strengths and challenges. While some are growing quickly, others are working to maintain their subscriber base, and others are cutting costs. Right now, Warner Bros. Discovery’s Max stands out because it is one of the few platforms that is seeing fast growth worldwide.