Subscriber Forecast
Warner Bros. Discovery (WBD) has announced that its streaming service, HBO Max, is on track to reach 150 million subscribers by the end of 2026. This follows a report of over 140 million subscribers at the close of Q1 2025, a figure that exceeded internal forecasts.
"We have strong and accelerating momentum," said WBD CEO David Zaslav.
Key Drivers of Growth
- Global Expansion: Recent launches in the UK, Germany, Italy, and Ireland have been significant contributors to subscriber growth.
- Accelerating Revenue: Zaslav confirmed that subscriber-related revenue growth is expected to accelerate in Q2 and beyond.
- Improved Metrics: WBD noted improvements in both engagement and churn rates. Under current management, over 50 million subscribers have been added.
- Financial Turnaround: The company has swung from $2 billion in losses to over $1 billion in profit.
Looking ahead, JB Perrette, WBD's streaming and gaming chief, highlighted that a planned 10-year run of Harry Potter seasons, starting in 2027, will be a major driver of future growth.
Industry Context
- Late to the Game: Launched in 2020, HBO Max arrived later than key competitors. It has since navigated challenges including the COVID-19 pandemic, corporate ownership changes, rebranding, and strategic shifts.
- Competitive Landscape: As of 2025, Netflix leads the market with over 325 million subscribers. Disney+, Amazon Prime Video, and WBD form the next tier of top streaming services, ahead of Peacock and Paramount+.
- Merger & Acquisition: WBD is currently in the process of being acquired by David Ellison's company for $110 billion. As part of this deal, Paramount+ and HBO Max are expected to combine, though specific integration plans have not yet been detailed.