HBO Max and HBO gained 3 million subscribers in Q1 as Netflix reports subscriber decline

This morning, AT&T will report its Q1 earnings for the last time. The WarnerMedia division was unloaded earlier this month, but the company still operated in the first quarter. The company said that the total global subscribers of the two channels ended in March at 78.6 million, up 12.8 million from a year ago and up 3.0 million from the previous quarter. As of March 31, the domestic subs of the two channels reached 48.6 million, up from 46.8 million at the end of the previous year and an increase of 4.4 million year-over-year.

The growth for HBO Max and HBO is a stark contrast to the loss of 200,000 subscribers reported by the company on Tuesday.

Netflix shares down more than 20% after losing 200,000 subscribers in first quarter

WarnerMedia's operating income declined by 32.7% year-over-year, as reported by AT&T. The company said during the earnings call that WarnerMedia's earnings decline is due to increased investments in CNN+ and expanding new territories.

In March, it was expanded to 15 countries. The claim that CNN+ spent $322,000 in 2021 is supported by this statement. According to CNBC, fewer than 10,000 people use CNN+ on a daily basis at the moment, with the service's big bet not paying off.

WarnerMedia revenue rose 2.5% in the first quarter to $8.7 billion, the company said, with the Discovery-WarnerMedia mega-merger officially closed as of early April. Ad revenue fell due to lower television audiences.

The Warner Bros.-Discovery deal has officially closed

John Stankey said in the earnings call that he was excited about the potential for continued growth of the service. Many of my fellow AT&T shareholders own a stake in this new and promising enterprise, and we are excited to continue to watch their success and the value they create as one of the leading global media companies.

The growth of HBO Max contributed to the increase in subscription revenues. AT&T allows some of its users with unlimited plans to watch the show for free.

Content and other revenues were $3.1 billion, an increase of 3.4%, driven by higher theatrical revenues, higher HBO Max licensing, and partially offset by lower TV licensing, according to the report.

The telecom company shared an average revenue per user of $11.24 for domestic subscribers in the first quarter of 2021, compared to $11.15 in the fourth quarter and $11.72 in the first quarter of the year.