Warner Bros. Discovery Says Streaming Business Will Reach Profitability in 2023
thewrap.comMax brand name on May 23, the entertainment giant revealed it had added 1.6 million streaming subscribers during the quarter for a total of 97.6 million globally.The direct to consumer division reported a profit of $50 million, a $704 million year-over-year improvement on a pro forma combined basis.
Revenue for the segment fell 2% year over year to $2.455 billion, including $2.165 billion in distribution revenue, $103 million in advertising revenue and $185 million in content revenue.
Average revenue per user came in at $10.82 domestically, $3.48 internationally and $7.48 globally. “We feel great about the trajectory we are on.
In fact, we now expect our U.S. DTC business to be profitable for 2023 – a year ahead of our guidance,” WBD CEO David Zaslav said in a statement. “Even in today’s challenging marketplace, we are positioned to drive free cash flow and deleverage our balance sheet, and we remain confident in our strategy and ability to achieve our financial targets.”The new service, which combines the libraries of HBO Max and Discovery+, will offer three pricing options: a $9.99 per month Max Ad Lite tier, a $15.99 per month Max Ad Free tier and a $19.99 Ultimate Ad Free tier.
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