Paramount $PARA is older than Warner Bros. Discovery by a few years, but it’s the latter that became the first Hollywood conglomerate to report profits from its streaming services on Friday.
But the company's stock plummeted anyway after earnings fell short of Wall Street's expectations
Paramount $PARA is older than Warner Bros. Discovery by a few years, but it’s the latter that became the first Hollywood conglomerate to report profits from its streaming services on Friday.
That’s all thanks to Max’s success. The company rolled out Max as an “enhanced streaming service” to include content from HBO, Warner Bros. films, the Discovery Channel, HGTV, and other brands last year.
“We fought hard to get Max to be profitable last year,” CEO David Zaslav in a call with investors Friday. The company reported a profit of $103 million in 2023 from its streaming platform, which it calls its “direct to consumer” segment.
That fight for profitability wasn’t without its struggles. The company said the SAG-AFTRA strike was a challenge.
“The fact is, the strikes really slowed down production and we didn’t have as much content as we wanted for Max. And we’re now moving forward with a great slate,” Zaslav said, pointing to new shows coming out like new seasons of Hacks and House of Dragons.
Despite the good news about Max, Warner Bros. Discovery’s overall sales missed analysts’ expectations, and the company’s stock fell 11% to $8 per share during Friday trading.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.