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**Warner Bros. Adds DTC Subscribers as TV Business Continues to Drop**

By Sahil Patel

10 hours ago

Source: The Information

Warner Bros. Discovery's direct-to-consumer segment, which includes its Max and Discovery+ streaming services as well as the traditional HBO network, continues to grow but was unable to offset the ongoing decline in the company's traditional TV business during the fourth quarter of 2024.

The DTC segment generated $2.7 billion in revenue during the quarter, up 5% from the previous year. Revenue for WBD's traditional TV business, however, fell 5% year-over-year to $4.8 billion. This was driven by a 17% decline in advertising revenue, which totaled $1.6 billion during the fourth quarter.

WBD ended 2024 with 116.9 million subscribers within its DTC segment, adding 6.4 million in the fourth quarter. In a shareholder letter, WBD executives said they are now on a path to reach at least 150 million total DTC subscribers by the end of 2026. The company had previously said it was targeting $1 billion in DTC earnings before interest, taxes, depreciation, and amortization this year. The DTC segment generated $409 million in adjusted earnings during the fourth quarter, up from a loss of $55 million the previous year.

WBD CEO David Zaslav also hinted that the company may not be a huge bidder for upcoming live sports rights, including for Major League Baseball and the UFC. "We do not need any more sports, anywhere in the world, to support our business," he said. Original movies and TV shows that Warner Bros. owns, such as the upcoming Harry Potter series, are more valuable to the company, he added.