Warner Bros. Discovery Ends Q1 Up 5.3 Million Streaming Subscribers to 122.3 Million
In this morning’s earnings call, Warner Bros. Discovery attempted to paint a rosy picture about its streaming business, but if you listened closely, it was mostly smoke.
First, WBD reported that much of its growth this quarter came internationally, but international average revenue per user (ARPU) was just $3.63. Domestica ARPU fell from $11.77 in Q4 to $11.15 in Q1.
$9.99/mo.
Unlike its competitors, WBD did not give specific domestic vs. international subscriber numbers.
Also, the company didn’t mention Discovery+ at all. In fact, company leaders on the phone call only referred to “the streamer” (Max), which makes it seem like Discovery+ is basically worthless to them.
True to form, CEO David Zaslav continued hammering the supposed strength of the company’s IP. He mentioned the upcoming Harry Potter series 6 times, up from 2 times in Q4, and 1 time in Q3. The show is supposed to start filming this summer and is expected to debut in 2026 or 2027. It will run for 10 years.
But what if it sucks? What if the ratings are weak? What if JK Rowling tweets her way into more public outrage?
The company also has a lot riding on this summer’s theatrical reboot of Superman. If that movie stumbles, it will jeopardize a planned 10-year reimagining of the DC superhero properties.
Three times during the call, Zaslav said “It’s not how much, it’s how good.” That lines up with Warner’s recent strategy realignment. But Zaslav’s track record so far has been shaky. This is a man who saw “The Flash” three times and called it “the best superhero movie I’ve ever seen.” (You can currently watch it for free on Tubi and judge for yourself.)
I’d like to believe Warner Bros. Discovery is going to become the gold standard of movie and TV quality. To be fair, they have generated some of the best content in recent years. But they’ve also stumbled with flops like “The Idol,” “Winning Time,” “The Regime,” and “The Franchise.” Last year, HBO fell to the third-most Emmy wins (behind Netflix and FX). They haven’t performed that poorly since 1996 – 3 years before “The Sopranos” kickstarted a TV renaissance.
The company attempted to put a happy face on its loss of NBA rights. “In the end, sports is a rental business,” Zaslav said.
