Warner Bros. Discovery Inc. (NASDAQ:WBD) executives on Thursday said the streaming bundle with The Walt Disney Co. (NYSE:DIS) is generating measurable benefits, helping reduce customer cancellations.
Disney Bundle Is Driving Better Streaming Metrics
During Warner Bros. Discovery’s second-quarter earnings call, an analyst asked whether the company was seeing measurable benefits from the bundle, which combines Max, Disney+ and Hulu under a discounted subscription.
Responding to the question, executives said the results have been encouraging.
“The proof is in the data,” Global Streaming & Games CEO Jean-Briac Perrette said, adding that the bundle has helped lower churn while improving subscriber additions.
The company said customers who subscribe through the bundled offering are proving to be more engaged and are remaining subscribers for longer periods compared with those on standalone services.
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Streaming Partnerships Continue to Gain Momentum
Warner Bros. Discovery said the bundle reflects a broader industry shift toward partnerships that make streaming services more attractive to consumers while helping media companies reduce customer turnover.
Perrette noted that the benefits extend across distributor-led bundles, including those offered by Verizon Communications Inc. (NYSE:VZ) in the U.S., which packages Max with Netflix Inc. (NASDAQ:NFLX), as well as partnerships with Mercado Libre and Claro in Latin America and Canal+ and Sky in Europe.
He added that among programmer-led bundles, the Disney partnership in the U.S. remains the company’s longest-running and most successful collaboration to date.
Streaming Remains a Bright Spot
Warner Bros. Discovery reported second-quarter revenue of $8.72 billion, down 12% year over year on a constant-currency basis and below analysts’ estimates of $9.29 billion.
Streaming remained a bright spot, with revenue rising 10% to $3.08 billion on a constant-currency basis, driven by HBO Max subscriber growth, international expansion and new distribution deals.
The company also reaffirmed confidence that its proposed $110 billion merger with Paramount Skydance Corp. (NASDAQ:PSKY) will close, despite a U.S. antitrust trial scheduled to begin March 2, 2027. The deal has already received U.K. regulatory approval.
Price Action: Warner Bros. Discovery shares closed Thursday up 1.66% at $26.40 and slipped 0.34% to $26.31 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Warner Bros. Discovery ranks in the 87th percentile for Momentum, though the stock has underperformed over the short and medium term while posting positive long-term performance.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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