November 6, 2025 – Reuters – Warner Bros Discovery (WBD) reported a quarterly performance that fell short of analyst expectations on Thursday, as weak growth in its streaming platforms and ongoing declines in cable TV revenue overshadowed strong results from its studio division.

The media conglomerate, which owns HBO Max, Discovery+, and a portfolio of cable networks, reported a loss of six cents per share for the third quarter—wider than analysts’ forecast of a four-cent loss. Total revenue decreased 6% to $9.05 billion, below estimates of $9.15 billion.

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Streaming Performance Disappoints

Warner Bros Discovery’s streaming business added 2.3 million global subscribers during Q3, missing analyst expectations of 2.75 million, according to Visible Alpha estimates. The shortfall came amid a lack of new content, as no new seasons of popular shows or major original programming were released in the quarter.

“After a strong year boosted by events such as the 2024 Paris Olympics and hits like The Penguin, the streaming platforms have struggled to maintain momentum,” analysts noted.

The company also flagged that the absence of NBA games, previously streamed on HBO Max, will negatively impact streaming advertising revenue by 300 basis points in Q4, with even larger effects expected in the first half of 2026.

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Cable TV Business Continues Decline

WBD’s legacy cable television operations faced continued pressure from cord-cutting trends, with revenue plunging 22% compared to last year. Even strong viewership during major events such as the Olympics and CNN news cycles could not offset broader declines.

The cable unit is grappling with structural shifts in media consumption, as audiences increasingly move to on-demand streaming services.

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Studio Division Drives Strong Results

In contrast, Warner Bros’ studio division delivered robust performance, driven by box office successes including Superman, Weapons, and The Conjuring: Last Rites. Revenue in the studio segment rose 24% to $3.32 billion, surpassing analyst expectations and providing a rare bright spot in the quarter.

The company reported an operating profit of $1.40 billion, slightly above last year but just below analyst forecasts.

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Strategic Review: Sale or Split Possible

Warner Bros Discovery is actively reviewing strategic options, including a potential sale of the company or its divisions, or a split of its studio, streaming, and global networks operations.

“There is no deadline or definitive timetable regarding this strategic review process,” WBD said in its earnings release, noting that executives would not address the matter during the earnings call.

The review highlights ongoing uncertainty in the media sector as companies adapt to shifting consumer preferences, intensifying competition from Netflix, Disney+, and other streaming giants.

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Outlook and Market Impact

Despite the mixed results, WBD’s shares fell only 1% in premarket trading, suggesting investors are taking the challenges in stride amid optimism about the studio’s performance. Analysts continue to monitor the company’s streaming content pipeline, ad revenue exposure, and potential corporate restructuring as key factors for its future growth.

The performance underscores the growing divide between traditional media operations and digital streaming, as WBD seeks to balance profitability with innovation and content delivery.