Warner Bros. Discovery is navigating financial pressure, weighed down by $38 billion in gross debt and the persistent erosion of its traditional linear television business. But amidst these challenges, its Max streaming service has become a potent growth driver, fueled by a surge in subscribers and a booming advertising business from its ad-supported tiers. The core business model divergence is now reportedly steering WBD towards a company split, possibly separating its digital future from its legacy cable past.
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WBD eyes split as streaming success contrasts with cable decline
State of Streaming
Key Takeaways
- WBD is considering splitting its company to separate its digital streaming and legacy cable businesses.
- The Max streaming service added 5.3 million subscribers in Q1 2025, boosting revenue by nearly 10% to $2.66 billion.
- Linear TV network revenues fell 7% year-over-year, contributing to a 10% overall revenue decline for WBD.