Trends: Streaming up, TV down

Warner Bros Discovery said it expects to double its streaming revenue this year, setting an ambitious goal of 150 million subscribers by 2026. The expansion of its Max platform and tight cost control are the main strategies through which the company hopes to achieve this goal.

• Streaming segment growth

In the fourth quarter of 2024, Warner Bros Discovery added 6.4 million subscribers, beating analysts' estimates of 4.9 million. The company currently has almost 117 million subscribers, but lags behind Netflix (302 million) and Disney+ (124.6 million). The global expansion of Max continues, with a launch in Australia in March and expansion to Germany, Italy and the UK in 2025. The company also plans to limit password sharing, a strategy already used successfully by Netflix. In 2025, Warner Bros Discovery estimates adjusted EBITDA of $1.3 billion for the streaming division, up from $677 million in 2024.

• TV segment declines, production studios grow

While streaming advances, the traditional television business is suffering. Revenue in the TV segment, which includes CNN, Discovery Channel and Animal Planet, fell 5% and advertising sales fell 17% due to the shift of advertisers to digital platforms. On the other hand, the studio division recorded a 15% increase, benefiting from higher content licensing fees and the end of the Hollywood strikes in 2023. Although Warner Bros Discovery reported losses of 20 cents per share, below analysts' expectations, investors responded positively, and the company's shares rose by more than 10%.

In fact, the other major streaming companies (Netflix, Disney+, Amazon Prime Video, SkyShowtime...) reported increases in subscribers. For example, Netflix added more than 5 million customers to its portfolio in the third quarter and exceeded investors' expectations for every major financial indicator.