Warner Bros. Discovery added 6.4 million global streaming subscribers in the fourth quarter, bringing its total to 116.9 million. The company reported $2.65 billion in revenue for its streaming division, a 5% increase from the same period last year.
Strong Growth in Streaming Revenue
Warner Bros. Discovery’s flagship streaming service, Max, continues to anchor its digital business. The company’s streaming segment achieved an adjusted EBITDA of $409 million, a significant improvement from the $55 million loss in Q4 of the previous year. The firm expects $1.3 billion in adjusted EBITDA for its streaming business in 2025, nearly doubling its 2024 performance.
Expansion Plans and Subscriber Growth
The company remains optimistic about future subscriber growth, aiming for 150 million global subscribers by the end of 2026. Max is set to expand into the United Kingdom and Ireland by Q2 2026, followed by launches in Germany and Italy in Q1 2026.
Changes in Content Offerings
Warner Bros. Discovery announced that Max will continue offering its B/R Sports and CNN content at no extra charge for standard and premium subscribers. However, access to these verticals will be removed from the ad-supported tier starting March 30.
Strategic Shift in Sports Content
CEO David Zaslav emphasized that the company is prioritizing profitability over acquiring additional sports content. While Netflix has expanded its live sports portfolio, Warner Bros. Discovery has chosen a different path, focusing instead on optimizing existing rights, which include the French Open, Major League Baseball, college football, and the National Hockey League. The company recently lost U.S. distribution rights to NBA games for the upcoming season.
Financial Performance and Stock Reaction
Despite its strong streaming performance, overall revenue for the quarter fell 2% to $10.03 billion, missing Wall Street’s forecast of $10.19 billion. The company reported a net loss of $494 million, or $0.20 per share, compared to a $400 million loss in the prior year.
Warner Bros. Discovery’s TV networks segment saw revenue decline to $4.77 billion from $5.04 billion, as cord-cutting and shrinking ad revenues continue to affect traditional media. Its studios division, however, experienced 15% growth year-over-year, reaching $3.66 billion in Q4 revenue.
Market Moves
Following the earnings release, WBD shares surged nearly 10% during Thursday morning trading, reflecting investor optimism about the company’s efforts to expand streaming revenue and cut losses in its network television sector.
