Part 7/9:
Despite these troubles, Warner Brothers’ streaming division has shown resilience. During the second quarter, HBO Max—now rebranded as Max— nearly broke even. The service even posted a profit of $50 million in the previous quarter, a rare achievement in today’s competitive streaming environment. This contrasts sharply with Disney+ and other platforms, which are still struggling to reach profitability.
Yet, despite this relative success, Warner Brothers Discovery’s overarching financial picture remains precarious. With continued layoffs, declining box office revenue, and high debt levels, the studio is far from out of the woods. The enormous success of Barbie offers some hope, but it is unlikely to compensate fully for the losses incurred by numerous Hollywood flops.