Max adds 6.4M global customers in Q4 2024
Max adds 6.4M global customers in Q4 2024
The final three months of last year proved to be pretty positive for WBD’s streamer as it turned a $409M profit.
Was Max able to finish out 2024 with another strong quarter? Warner Bros. Discovery’s streaming service added 7.2 million subscribers in the third quarter of the year, finishing that period with 110.5 million. That number exceeded forecasts and then some, and in the fourth quarter WBD was able to add 6.4 million more streaming customers, bringing its overall total to 116.9M. WBD currently has 57.1 domestic streaming subscribers, and 59.8 million customers. Although WBD does not break out its streaming subscriber totals for Max and discovery+ separately, it’s fair to assume the vast majority of these users are on Max.
Average revenue per user (ARPU) hit $7.44 for WBD during the quarter, down from last quarter’s total of $7.84. The company noted that the decline was fueled by increased penetration in international regions with lower subscription prices and an increase in domestic bundles and wholesale subscriptions. While these lead to lower ARPU totals, they also have proven to greatly increase customer retention.
WBD managed to pull in a net revenue of $2.65 billion during the quarter which was a 6% increase year-over-year. The company’s direct-to-consumer (DTC) advertising revenue increased 27%, leading to a $409 million profit during the final three months of 2024, compared to a $55 million shortfall during Q3.
What was WBD up to during the fourth quarter?
One of the biggest stories WBD generated during the fourth quarter was its decision to split its linear channel business from its streaming services. Cable networks like CNN, HGTV, Travel Channel, and others will be shunted into their own business unit, while Max and the Warner Bros. movie studio will be segmented in another. The move is supposed to be completed by mid-2025.
WBD waited until the new year to roll out a newly updated user interface for Max. That upgrade is still rolling out for Max customers, but it shifts menu buttons from the top of the screen to the left-hand side, and creates new content navigation pages, among other changes designed to help customers find content more quickly.
Just hours before announcing its Q4 earnings, Max also revealed that it was changing the plans for its Bleacher Report Sports add-on. Previously, the streamer intended to charge all subscribers an extra $10 per month to watch. Now, Max has abandoned the idea of making B/R Sports a paid add-on, but it will no longer be available on the ad-supported plan of the service as of March.
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.