Title: Warner Faces Subscribers Loss with the Renaming of HBO Max to Max
Subtitle: Warner executives attribute decline to anticipated churn and user base overlap
In a surprising turn of events, Warner’s decision to rename HBO Max as Max has reportedly led to a drop in subscribers for the streaming service. According to recent online news, the platform lost nearly 2 million subscribers last quarter, resulting in its paying customer base shrinking from 98 million to 96 million. While the name change seems to be the primary factor behind this decline, Warner remains confident and believes that a significant portion of customers signed up merely for a few months to watch highly anticipated shows like The Last of Us.
Warner’s quarterly report, set to be released next month, will provide further insights into the impact of the name change. The media giant is eager to determine whether the loss of subscribers can be attributed solely to the alteration or if other factors have influenced customer behavior.
However, Warner recently shared positive news regarding its financial performance in the second quarter. Both its top and bottom lines observed growth compared to the previous quarter, which softened the blow of losing paying customers. Executives at Warner Bros. highlight various reasons for the decline in subscribers, including user base overlap between Max and Discovery Plus, as well as the anticipated churn following the conclusion of popular shows like The Last of Us and Inheritance.
During an earnings call, Gunnar Wiedenfels, the Chief Financial Officer of Warner Bros., downplayed concerns about the decline, stating that it was mainly due to user base overlaps. CEO David Zaslav echoed this sentiment, mentioning that while there were some expected outages, Warner experienced lower-than-expected churn during the process of migrating HBO Max subscribers to the new Max app.
Despite the recent setback, Warner retains its optimism and expects its U.S. streaming business to remain profitable throughout the year. With the upcoming quarterly report, the company hopes to gain a better understanding of the dynamics surrounding the subscriber decline and devise strategies to mitigate such losses in the future.
As Warner navigates the changing streaming landscape, it remains determined to provide customers with an exceptional entertainment experience through its Max platform.