Warner Bros Discovery reports underwhelming revenue, says new streaming service coming earlier
Summary
Discovery reported its third-quarter earnings on Thursday, missing analyst expectations, as it felt the effects of a tough advertising environment and costs associated with its post-merger restructuring. Since the merger was completed, the company has been in the midst of significant cost-cutting measures, such as laying off staffers and pulling content from its streaming service HBO Max. Streaming services have been competing for subscribers, with industry behemoth Netflix losing customers earlier this year and unveiling an ad-supported tier at a cheaper cost. Management also noted that HBO Max hasnt increased its subscription price since its launch nearly three years ago, putting it in a good position to do so when it re-launches as a combined platform with Discovery+. Ad-supported streaming services such as Fox s Tubi and Paramount Global s Pluto TV have seen their audiences surge and add significant advertising revenue.