Warner Bros Discovery Inc said on Friday its streaming business turned a profit in the first quarter, a milestone for a division that had been losing money in its bid to gain subscribers and a foothold in the industry's digital future.
CEO David Zaslav was in the vanguard of media executives who sought to restrain spending on content for the company's service, seeking to balance the growth of the nascent service with continued investment in Warner Bros Discovery's traditional film and television business.
Warner Bros Discovery reported revenue of $10.70 billion for the first three months of 2023, compared with analysts' estimates of $10.78 billion, according to Refinitiv data. The Warner Bros studio segment missed on its revenue forecasts, as its big March release"Shazam! Fury of the Gods," a sequel to 2019's"Shazam," was met with a cool reception at the box office. The sequel brought in $133 million at the box office, far below the $368 million garnered by the original.