WBD recorded streaming profit despite subscriber losses
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Warner Bros. Discovery recorded a $111 million profit for its streaming business in the third quarter of 2023.
The company, which owns Max and Discovery+, lost 700,000 streaming subscribers but managed to increase the revenue per subscriber by 6%, which helped offset the loss of accounts.
The company’s film division, which had a mega-hit with “Barbie” over the summer of 2023, managed to reduce its third-quarter loss to $417 million. It lost $2.3 billion during the same quarter in 2022.
Overall, the success of the “Barbie” film still wasn’t enough to bring the company’s revenue in line with forecasts.
Direct to consumer distribute revenues was up 6% to $2.179 million, while ad revenue for the sector grew 30% to $136 million.
DTC distribution revenue rose 6% to $2.179 million. DTC ad revenue increased 30% to $136 million.
Warner Bros. Discovery had a $111 million profit on its streaming direct-to-consumer business and shrunk its overall third-quarter loss to $417 million.
Direct-to-consumer has been the debt laden company’s main problem. Like other media companies jumping into streaming It has been cutting costs and raising prices to stanch the red ink.
The company lost 700,000 direct-to-consumer subscribers in the quarter, but average revenue per subscriber rose 6% to $7.82.
The company finished the quarter with 95.1 million subscribers to Max and Discovery Plus, including 52.6 million domestic subscribers, a loss of 1.4 million.
Direct to consumer adjusted earnings before interest, taxes, depreciation and amortization was $111 million, compared to a $634 million loss a year ago.
The news of strong streaming profits is likely good news for the company — given the fierce competition and high costs in the category. Growth in ad revenue for DTC is also positive news as most media companies are facing a weaker ad market.