Warner Bros. Discovery reported on Thursday that it lost 1.8 million streaming subscribers in the second quarter of 2023. The company's streaming service, HBO Max, lost 1.2 million subscribers, while its sports streaming service, Discovery+, lost 600,000 subscribers.
The losses were attributed to a number of factors, including the ongoing war in Ukraine, which has led to increased competition for streaming subscribers. The company also said that it was facing challenges in growing its subscriber base in international markets.
The Max rebrand, which was announced in April 2022, was intended to simplify the company's streaming offerings and make it easier for consumers to sign up. However, the rebrand appears to have had the opposite effect, as it has led to some confusion among consumers.
Warner Bros. Discovery CEO David Zaslav said that the company is "committed to growing our streaming business" and that it is "making progress on a number of fronts." However, he acknowledged that the company faces "some challenges" and that it needs to "make some changes."
The company said that it plans to launch a new ad-supported version of HBO Max in the United States later this year. It is also planning to expand its international reach and to produce more original content.
It remains to be seen whether these changes will be enough to turn things around for Warner Bros. Discovery's streaming business. However, the company is clearly aware that it needs to make some significant changes if it wants to compete with the likes of Netflix and Disney+.