Warner Bros. Discovery Sees ‘Barbie’ Boost & Free Cash Flow In Mixed Quarter Squeezed By Strike, Soft Ad Market
deadline.comWarner Bros. Discovery’s third quarter was mixed with ‘Barbie’ coin and free cash flow beloved by Wall Street offset by sluggish advertising and the impact of the actors’ strike on the one of the industry’s biggest content creators.
Streaming, which turned profitable in the first quarter ahead of most rivals, but lost $3 million in Q2, was back in the black to the tune of $111 million despite a net subscriber loss as Discovery+ users continued to migrate to Max, which showcases lots of Discovery programming.
Subs declined to 95.1 million in the third from 95.8 million in the second quarter. Streaming revenue was up 5% to $2.4 billion on price hikes, which are sweeping the streaming landscape, and digital ad revenue that’ growing off a small base.
The quarter saw the successful launch of CNN Max in late September, followed by the debut of the Bleacher Report Sports add-on tier.
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