Max, the streaming service formerly known as HBO Max, has lost 700,000 subscribers in the past three months. Despite the huge drop, streaming revenue at Max, which is owned by Warner Bros. Discovery, were up 5 percent—with a 30 percent year-on-year jump in advertising revenue. These numbers raise a big question for the streaming industry: People like Max, but they don’t really want to pay for it.
Discovery’s earnings report on Wednesday, Henschel said it “would be promising to see subscriber growth”—something that often happens at the end of the year when people sign up for services to watch during the holiday season—but ultimately, it’s the revenue that matters. “Investors right now are very keen on profitability,” she says. Warner Bros. Discovery, of course, isn’t the only company trying to figure out what price is right for subscribers to turn those profits.