Warner Bros. Discovery Quarterly Loss Mitigated by 'Barbie', Subscribers Drop, Warns of Lingering Hollywood Strikes Impact

Warner Bros. Discovery reports a decrease of 700,000 subscribers from Q2 to Q3, despite Barbie's record-breaking success, and warns of potential prolonged financial impacts from Hollywood strikes into 2024.

Warner Bros. Discovery's (WBD) Q3 losses were partially offset by record-breaking success of 'Barbie', which grossed over a billion dollars at the global box office, marking it as WBD's highest-grossing film ever.
Despite 'Barbie's' unprecedented success, WBD reported a net loss of $417 million for Q3 and a drop of 700,000 streaming subscribers, bringing the total number of subscribers down to 95.1 million.
The company's financial struggle is further exacerbated by ongoing Hollywood strikes from the Writers Guild of America and SAG-AFTRA, whose prolonged impact could continue to impede earnings into 2024.
While streaming services proved to be a bright spot with direct-to-consumer revenue seeing a 5% increase, WBD also highlighted challenges in advertising, noting a 12% decline in advertising revenue due to subscriber loss and a soft ad market.
WBD's merger debt and the current industry challenges have pushed the company to focus on reducing debt, generating cash flow, and creating value for shareholders, even as it navigates the shift from traditional TV networks to streaming services.

The Hollywood Reporter