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On Thursday, Warner Bros. Discovery (WBD+5.81%) (WBD) said its streaming unit was profitable again, outlining a future that sees overall customers grow to at least 150 million by the end of next year.
New York-based WBD said it ended 2024 with 116.9 million global streaming subscribers, up from 110.5 million at the end of September. Its direct-to-consumer unit, which includes both Max and Discovery+, added both domestic and international subscribers over the three-month period that ended in December.
“In this global media disruption, only the global streamers will survive and prosper,” CEO David Zaslav said during an earnings call. “We have a clear and demonstrable path to 150 million subscribers by the end of 2026.”
The media giant has been focused on putting Max on the global stage, announcing on Wednesday that the streamer will be launching in the Australian market at the end of March. A deal was recently struck to put Max on British broadcaster Sky (SKY-1.34%) in the United Kingdom and Ireland by the second quarter of next year, following a launch in Germany and Italy during the prior quarter.
Max is already available in dozens of countries across the world, but still has a lot of room to grow. “In short, our global expansion still has significant runway as Max rolls out to over 40% of the addressable global market where it is not yet available,” Zaslav said in a letter to shareholders.
WBD shares rose by almost 5% in pre-market trading on Thursday.
WBD’s streaming service turned a profit of $667 million in 2024, up from $103 million a year earlier, including $409 million during its fourth quarter, up from a $55 million loss in 2023. The company was the first to turn a full-year streaming profit, but its rivals have been busy.
Netflix (NFLX-2.52%), generally seen as the leader in streaming, surpassed 400 million paid memberships last quarter, with its global audience — including “extra member accounts” — estimated at more than 700 million. It took home $8.71 billion last year in profit. The Walt Disney Co.’s (DIS-0.34%) streaming business, which includes Hulu, ESPN+, and Disney+, has now been profitable for three quarters in a row.