Warner Bros. Discovery Hit By 1.8 Million Subscriber Loss, Box Office Bombs And More In Q2 Earnings

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Streaming subscriptions fall in wake of Max with 'Barbie' aimed to release on the streamer in Q3. Warner Bros. Discovery expects the Hollywood strike to go to September.

Chief executive officer David Zaslav sidestepped a question on how far apart the producers, represented by the Alliance of Motion Picture and Television Producers, and the writers and actors remain on terms. He echoed other recent executive calls for a fair deal for all sides without specifying what that might look like.

“I think all of us in this business are very keen to figure out a solution as quickly as possible,” Zaslav said.Coming into the call, analysts had anticipated seeing losses in advertising and streaming, and those bore out. Zaslav noted the generally soft advertising environment, which has hurt other companies but had an especially big impact on Discovery due to its expansive cable holdings, including TBS, TNT, Discovery Channel, CNN, HGTV and more.

On the streaming side, global subscribers fell by 1.8 million, to 95.8 million in second quarter, which was also not a surprise. The period included the transition from separate streaming services for HBO Max and Discovery properties to the new Max, which debuted this spring and now houses all Warner Bros. Discovery cable content, including everything from HBO’sThe losses came from people eliminating duplicate subscriptions, such as HBO Max and Discovery+.Warner Bros.

 

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