Warner Bros. boosts streaming subscribers on international push

WARNER Bros. Discovery Inc., the parent of the Max streaming service, gained more subscribers than expected in the third quarter, boosted by its international expansion and suggesting its online business is picking up.

The New York-based media company, which also owns the CNN and TBS cable channels, added 7.2 million net streaming subscribers in the three months ended Sept. 30, the strongest quarterly gain since the platform’s launch. Analysts expected 6.1 million, according to data compiled by Bloomberg.

As viewers shift from traditional TV to streaming services, Warner Bros.’ goal is to get Max on as many devices and in front of as many consumers as possible. In September, Warner Bros. scored an early renewal of a distribution agreement with Charter Communications Inc., the largest US cable-TV service. The agreement allows Charter subscribers to get the ad-supported version of Warner Bros.’ Max streaming service and Discovery+ as part of their Spectrum TV select packages.

Warner Bros. launched Max in Europe in May, adding to existing offerings in Latin America. The company has plans to introduce Max in Asia, including Indonesia, Malaysia, the Philippines, and other countries later this month.

Revenue at Warner Bros.’ direct-to-consumer unit, which includes streaming services, rose 8% to $2.6 billion. At Warner Bros.’ traditional networks segment, its biggest business unit, sales rose 3% to $5.01 billion.

Overall sales at the company declined for the fourth consecutive quarter to $9.6 billion, missing the $9.81 billion average of analysts’ estimates. Warner Bros. reported a profit of 5 cents a share. –BLOOMBERG