Warner Bros. Discovery (NASDAQ: WBD), the parent company of HBO and CNN, has reported a substantial increase in subscribers for its streaming service Max, adding 6.4 million new users in the fourth quarter of 2024. This growth brings the total number of subscribers to 116.9 million, marking a significant milestone for the company’s direct-to-consumer operations. Despite facing challenges in its traditional TV networks, Warner Bros. Discovery remains optimistic about its streaming prospects, projecting a reach of at least 150 million subscribers by the end of 2026.
The streaming division, primarily driven by Max, generated $2.65 billion in revenue during the fourth quarter, reflecting a 5% increase from the same period last year. This growth is notable, especially considering the broader media landscape where traditional TV networks are experiencing declines. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the streaming segment reached $409 million, marking a significant turnaround from the $55 million loss reported in the fourth quarter of 2023.
Warner Bros. Discovery has seen fluctuations in response to these developments. The company’s ability to turn a profit in its streaming operations is crucial for investors, as it indicates a strong potential for future growth.
While the streaming business is thriving, the Company’s traditional TV networks continue to face challenges. The company reported a fourth-quarter loss, largely due to restructuring costs and a decline in ad sales. The U.S. linear TV advertising market has been particularly affected, with a significant drop in revenue. Despite these challenges, the growth in streaming subscribers has helped offset some of these losses, positioning Warner Bros. Discovery as a major player in the competitive streaming market.
Warner Bros. Discovery has made strategic decisions to enhance its streaming offerings. The company announced that Max will continue to include B/R Sports and CNN content without additional fees for standard and premium subscribers, although these will be removed from the basic ad-supported tier starting March 30. This move aims to maintain a competitive edge by offering a diverse content slate that includes popular franchises and exclusive titles.
Looking ahead, Warner Bros. Discovery plans to expand Max’s reach further. The service is set to launch on the Sky television platform in the United Kingdom and Ireland in the second half of 2026, with introductions planned for Germany and Italy in the first quarter of that year. This expansion is part of the company’s broader strategy to achieve its subscriber growth targets.
Warner Bros. Discovery’s projection of reaching at least 150 million subscribers by the end of 2026 is ambitious but achievable given the current growth trajectory. The company’s focus on international expansion and strategic content offerings has been successful so far, and these efforts are expected to continue driving growth in the coming years.
