There’s optimism about streaming coming from Warner Bros. Discovery, which expects to hit 150 million subscribers by 2026.

The company released its quarterly financial report this morning, revealing that Q4 2024 revenue was down by 2% (US$10 billion) and full-year revenue by 5% (US$39.32 billion). The media conglomerate reported a net loss of US$494 million for the quarter, compared to a US$400-million loss in Q4 2023.

WBD added 6.4 million new streaming subscribers this quarter, bringing its current total to 116.9 million. And the company’s DTC unit posted a profit of US$409 million—an improvement from the US$55-million loss it sustained in the same period last year. In terms of the full financial year, the DTC business was profitable to the tune of US$677 million, compared to US$103 million in 2023.

In a shareholder letter, WBD said it expects the DTC segment to deliver roughly US$1.3 billion of adjusted EBITDA in 2025. On the back of expanding its flagship streamer Max to more than 70 countries last year, WBD will roll out the service in Australia next month (March 31), with additional launches expected in Germany and Italy this year, as well as UK and Ireland through a Sky deal that was signed in 2024.

The studio segment saw its annual revenues increase by 16% to reach US$3.66 billion. TV had a strong showing and was a key contributor to the company’s growth last year, offsetting declines in theatrical (due to fewer releases) and gaming (due to the strong performance of Hogwarts Legacy in the previous year). Revenue from the networks segment declined 5% (US$4.8 billion), while profits dipped by 13% (US$1.9 billion).

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