Warner Bros. Discovery added 2 million direct-to-consumer subscribers in the first quarter of 2024. It now has a total of 99.6 million DTC subscribers across Max, linear HBO, Discovery+, and some relatively small international streamers you’ve never heard of. Don’t worry about those.
It’s just the second quarter of a return to DTC-subscriber growth after three straight quarters of losses. The combination of HBO Max and Discovery+ was bound to cannibalize some subscriptions.
The DTC business made an $86 million profit in the quarter. David Zaslav, the WBD president and CEO, shorthands that segment to “streaming,” so you can too.
Warner Bros. Discovery, itself the combination of Discovery, Inc. and AT&T’s former WarnerMedia, is a bit more than 2 years old now. The consolidation created a gigantic heap of debt. WBD paid down $1.1 billion of it in Q1 2024; $43.2 billion remains.
Warner Bros. had some “Wonka” and “Aquaman and the Lost Kingdom” carryover for the January-to-March quarter, but crucially it released “Dune: Part Two” on March 1. WB also had exactly one opening weekend of “Godzilla vs. Kong: The New Empire.” “Dune 2” and the new “Godzilla” film were both Legendary releases. “Dune: Part Two” has made more than $700 million at the global box office — it’s the biggest film, thus far, of 2024.
HBO/Max in the quarter released “True Detective, Night Country” in January and Kate Winslet’s “The Regime” in March. “Curb Your Enthusiasm” ended its incredible run in the quarter. Warner Bros. shut down digital-content company Rooster Teeth in March.
WBD, Fox, and Disney are planning to launch a joint venture sports-streaming service. We do not yet have a name or a price point. Disney revealed its January-to-March earnings on Tuesday and Fox did on Wednesday, so they’re not saying anything anytime soon.
On Wednesday, Disney and Warner Bros. Discovery announced a new streaming bundle coming this summer that will combine Disney+, Hulu, and Max.
More to come…
