Warner Bros. Discovery Sets Sights on 150 Million Subscribers by 2026
Warner Bros. Discovery, the entertainment giant, made waves with its recent announcement of adding 6.4 million global streaming subscribers in the fourth quarter, bringing its total to a staggering 116.9 million subscribers. The company’s streaming segment, led by the popular service Max, reported a revenue of $2.65 billion in the fourth quarter, marking a 5% increase from the previous year.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization for the streaming unit also saw a significant boost, reaching $409 million, compared to a loss of $55 million in the same quarter in 2023. These impressive figures have set the stage for Warner Bros. Discovery to forecast an adjusted EBITDA of $1.3 billion for its streaming business for the year, doubling the $677 million reported in 2024. Moreover, the company boldly predicted reaching 150 million global subscribers by the end of 2026.
CEO David Zaslav expressed confidence in the company’s trajectory, emphasizing the importance of global streaming services in the rapidly evolving media landscape. Zaslav’s statement during the earnings call highlighted Max’s pivotal role in navigating this media disruption, positioning it as a frontrunner in the industry.
Max’s upcoming launch on the television service Sky in the United Kingdom and Ireland, followed by its debut in Germany and Italy, underscores Warner Bros. Discovery’s strategic expansion plans. These moves are poised to further solidify Max’s presence in the international market, bolstering its subscriber base and revenue streams.
The company’s decision to retain B/R Sports and CNN content at no additional cost for subscribers in its standard and premium tiers is a testament to its commitment to enhancing customer experience. Initially, Warner Bros. Discovery had planned to charge extra for sports content, but a shift in strategy will now see these verticals moved exclusively to higher-tier subscriptions starting March 30.
Despite the positive momentum in the streaming segment, Warner Bros. Discovery faced some challenges in other areas of its business. The company’s overall fourth-quarter revenue dipped by 2% to $10.03 billion, falling short of analysts’ expectations. Full-year 2024 revenue also saw a decline to $39.32 billion, down 5% from the previous year.
The TV networks division reported a revenue of $4.77 billion, lower than the year-earlier period, signaling a challenging landscape for linear television. Warner Bros. Discovery acknowledged the impact of declining cable subscribers and a shrinking advertising market, especially in the U.S., further underscoring the need for strategic adaptation in the changing media landscape.
On a brighter note, the studios business witnessed a 15% increase in revenue, totaling $3.66 billion in the fourth quarter, reflecting a promising growth trajectory. Zaslav reiterated the company’s commitment to reclaiming industry leadership in the studios business, emphasizing a strategic focus on innovation and growth.
As Warner Bros. Discovery navigates the dynamic media landscape and pursues ambitious targets for subscriber growth, the company’s adaptability and strategic vision will be crucial in shaping its future trajectory. Stay tuned for further updates as this story continues to evolve.
