Warner Bros Discovery streaming revenue rises as HBO Max expands

Warner Bros Discovery reported a 9% jump in streaming revenue to $2.89 billion in the first quarter, beating analyst expectations of a 7.6% rise. The lift came as HBO Max completed its international rollout, adding subscribers and boosting engagement worldwide.

The company’s streaming subscriber base ended March with more than 140 million users, while Paramount+ counted 79.6 million, putting the combined potential of a merged entity at over 220 million subscribers—a scale the firm says will help it compete with Netflix and Disney [2]. CEO David Zaslav called HBO Max “the linchpin” of Warner Bros Discovery’s growth strategy and a “huge benefit” to Paramount once the $110 billion merger closes.

Despite the revenue gain, the first‑quarter net loss widened to $2.92 billion, largely due to a $2.8 billion termination fee paid to Netflix under the pending merger agreement [2]. Advertising revenue also fell 7%, hurt by the loss of NBA content and continued declines in domestic linear TV audiences. The company warned that the absence of NBA programming will create a 16% constant‑currency headwind to streaming ad revenue in the second quarter [2].

Analysts see the merger as a way to bolster the U.S. sports offering outside Disney, potentially pulling ad dollars back to the combined platform [2]. However, the ultimate impact hinges on regulatory approval and the timing of the deal’s closure.

If the merger proceeds, Warner Bros Discovery could emerge with the strongest U.S. sports portfolio among streaming rivals, reshaping ad revenue dynamics and intensifying competition for subscriber growth. The next quarter will reveal whether the expanded HBO Max footprint can offset advertising headwinds and sustain the revenue momentum.