Warner Bros. Discovery (WBD) announced that it gained 6.4 million new global streaming subscribers in the fourth quarter of 2024, bringing its total to 116.9 million. The company’s streaming segment, led by its Max platform, generated $2.65 billion in revenue, marking a 5% increase from the $2.53 billion reported in the same quarter of 2023. More notably, the unit posted an adjusted EBITDA of $409 million, a significant turnaround from the $55 million loss in the previous year.
In a shareholder letter, WBD projected its streaming business would reach $1.3 billion in adjusted EBITDA for 2025 nearly double the $677 million it reported for 2024. The company also reaffirmed its goal of hitting 150 million global subscribers by the end of 2026. Max is set to expand its reach, launching on Sky in the UK and Ireland by Q2 2026 and entering Germany and Italy in Q1 of that year.
David Zaslav, CEO, Warner Bros. Discovery, said, “In this generational media disruption, only the global streamers will survive and prosper, and Max is just that. We are laser-focused on getting our studios back to a place of industry leadership.” He also added, “We don’t need any more sports anywhere in the world in order to support our business.”
On Wednesday, WBD confirmed that Max will continue offering B/R Sports and CNN content at no extra cost for its standard and premium tiers. However, these features will be removed from the ad-supported basic plan starting March 30.
JB Perrette, CEO of global streaming and games, said the company is still experimenting with sports and news business models. While live sports are becoming more common on streaming platforms Netflix recently expanded its live sports offerings WBD is taking a cautious approach.
Despite losing U.S. NBA broadcasting rights after the current season, WBD still holds key sports rights for Major League Baseball, the NHL, college football, and the French Open.
In the news segment, Zaslav admitted that WBD expected CNN to perform better during the 2024 U.S. presidential election cycle, but its audience didn’t grow as anticipated. Both CNN and MSNBC saw sharp rating declines post-election, while Fox News continued to perform strongly.
Despite streaming growth, WBD’s overall Q4 revenue fell 2% to $10.03 billion, missing Wall Street’s $10.19 billion estimate. The company also reported a net loss of $494 million (20 cents per share), widening from $400 million (16 cents per share) in Q4 2023.
In Q4 2024, TV Networks revenue declined to $4.77 billion, down from $5.04 billion in the same period last year. Meanwhile, Studio revenue saw a strong 15% increase, rising to $3.66 billion from $3.17 billion in Q4 2023, highlighting significant growth in content production and distribution.
WBD has already written down $9.1 billion for its networks division and anticipates further losses as cable subscribers decline and linear TV ad revenue shrinks faster than expected.
As WBD navigates shifting media trends, it is banking on streaming expansion, sports content strategies, and studio performance to drive future growth. Shares of Warner Bros. Discovery rose nearly 5% following the earnings report, reflecting investor optimism despite the company’s financial challenges.