Max, Discover+, and HBO lost a combined 1.8 million subscribers in the three months to June 30, Warner Bros. Discovery has announced.
Total global subscribers fell from 97.6 million at the end of March to 95.8 million at the end of June, with Warner Bros. Discovery launching Max, the rebranded HBO Max, in the U.S. on May 23.
In the company's latest financial report, president and CEO David Zaslav insisted its direct-to-consumer business, which includes Max, is tracking “well ahead” of the company’s financial projections.
Despite this, Warner Bros. Discovery second quarter revenue decreased 4% to $10.3 billion, and losses swelled to $1.24 billion.
TV revenue declined due to the timing of production, fewer CW series, and fewer series sold to Warner Bros. Discovery’s owned platforms. Video game revenue was lower due to a tough comparison with Lego Star Wars: The Skywalker Saga, which launched in the same quarter the previous year. And home entertainment and theatrical revenues declined due to the stronger performance of last year’s film slate, including The Batman.
Warner Bros. Discovery failed to directly mention The Flash, which bombed at the box office with just $268 million in revenue, but did say its movies were "inconsistent". Barbie's record-breaking release came in July, and so will count towards the company's next financial quarter.
Still, Zaslav pointed to the $1.7 billion in free cash flow generated during quarter as a positive. “The important work we are doing to transform our businesses for the future continues to drive our strong financial performance as demonstrated by meaningful improvements to our balance sheet and our now increased synergy target of more than $5 billion,” Zaslav said.
HBO has a number of hit shows under its belt, including Succession, Game of Thrones: House of the Dragon, and The Last of Us. Warner Bros. Discovery trumpeted HBO’s 127 Primetime Emmy Nominations, the most of any network or platform.
When Max launched in May, subscribers took to social media to complain about login troubles, voice their confusion about the transition, and poke fun at the new name.
Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
