Warner Bros. Discovery announced on Thursday that its streaming platform, Max, gained 7.2 million global subscribers in the third quarter, marking the largest quarterly growth since its launch. As of September 30, Max reached 110.5 million subscribers. The company’s flagship streaming service has been rapidly expanding its subscriber base this year, especially after its international expansion in the first half.
Warner Bros. Discovery’s stock surged over 10% following the news. The streaming business has become a significant asset for the company amid challenges faced by its traditional TV networks due to cord-cutting and a weak advertising market. In the previous quarter, Warner Bros. Discovery reported a $9.1 billion write-down on its TV networks.
In the third-quarter results released on Thursday, Warner Bros. Discovery reported a 4% decrease in revenue to $9.62 billion compared to the same period last year. Total adjusted earnings before interest, taxes, depreciation, and amortization dropped by 19% to $2.41 billion. The company turned a profit of $135 million, or 5 cents per share, compared to a loss of $417 million, or 17 cents per share, in the corresponding period last year.
While TV networks revenue increased by 3% to $5.01 billion, the Studios segment revenue declined by 17% to $2.68 billion, primarily due to a 40% drop in theatrical revenue. However, the streaming business revenue rose by 8% to $2.63 billion, driven by a rise in global subscribers, increased advertising revenue, and higher global average revenue per user. Adjusted EBITDA for the streaming segment was $289 million, up by $178 million from the previous year.
Despite the focus on streaming profits over subscriber growth on Wall Street, media companies have been reporting customer additions this quarter. Netflix added 5.1 million subscribers in the quarter, reaching a total of 282.7 million memberships. Starting in 2025, Netflix will no longer provide updates on subscriber numbers, shifting its focus to revenue and other financial metrics.
Comcast’s Peacock streaming platform gained 3 million subscribers in the third quarter, driven by the Summer Olympics in Paris, bringing its total to 36 million by September 30. Disney reported a 1% increase in Disney+ Core subscribers to 118.3 million, while Hulu saw a 2% rise to 51.1 million subscribers. Paramount Global’s streaming division unexpectedly turned a profit last quarter, but its Paramount+ platform lost 2.8 million subscribers, dropping to 68 million due to the unwinding of a Korean partnership deal.
