Warner Bros. Discovery, Inc. (WBD): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the future of a media titan, figuring out if Warner Bros. Discovery, Inc. can successfully merge its massive legacy cable business with its aggressive streaming push. Honestly, their Business Model Canvas reveals a high-wire act: balancing steady affiliate fees against the need to grow Max and Discovery+ subscribers, which hit 128.0 million globally by Q3 2025, all while servicing $34.5 billion in gross debt. We've distilled the nine core components-from monetizing DC and Harry Potter IP to managing huge content production costs-so you can see the exact levers they are pulling today. Keep reading to see the precise structure driving their next big move.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Key Partnerships

Cable/satellite operators for linear network distribution are a critical, though shrinking, part of the distribution structure. Global Linear Networks segment revenue in the second quarter of 2025 was reported at $4.8 billion, reflecting a 9% year-over-year decrease ex-FX. This decline was driven by a 9% year-over-year drop in domestic linear pay TV subscribers in Q1 and Q2 2025. By the third quarter of 2025, Global Linear Networks revenue fell further to $3.88 billion, a 22% drop year-over-year, with advertising revenue hitting $1.19 billion in that quarter, down 20%.

Amazon Web Services (AWS) is a key technology partner, established as the Official Cloud Infrastructure, Artificial Intelligence, Machine Learning, and Deep Learning Provider for the WHOOP UCI Mountain Bike World Series. This collaboration launched the generative AI-powered Cycling Central Intelligence (CCI) platform for the 2025 season opener in Brazil. Furthermore, Warner Bros. Discovery (WBD) powers its Innovate On The Lot accelerator program with AWS, focusing on areas like IP Protection and Marketing Creation.

The partnership with Events.com is set for the 2025 through 2028 period, naming them the Global Partner for WBD Sports' Events division. This deal covers ticketing and fan engagement for three global competitions: the WHOOP UCI Mountain Bike World Series, the FIM Endurance World Championship, and the FIM Speedway Grand Prix. Events.com, prior to its IPO, had a reported pre-money equity valuation of $314 million.

Theatrical exhibitors remain vital for global film distribution and initial revenue capture. For the full year 2025, Warner Bros. Discovery (WBD) surpassed $4 billion in worldwide box office revenue. The third quarter of 2025 saw theatrical revenue surge 74% year-over-year, fueled by films such as DC Studios' "Superman," which grossed $615 million worldwide, "Weapons" at $267 million, and "The Conjuring: Last Rites" with over $490 million globally.

Licensing partners monetize intellectual property (IP) across consumer products and other formats. Over the last five years, WBD's film and TV libraries have generated an average of roughly $5 billion in annual revenue through third-party and internal licensing. In Q2 2025, the company noted its gaming strategy generates $0.30 for every dollar a key rival makes from circulating its IP across various formats. The Studios segment's Q2 2025 TV content revenue saw a 115% increase ex-FX, largely due to higher intercompany content licensing timing.

Here is a snapshot of the financial scale related to these key distribution and technology partnerships as of late 2025:

The operational relationships include specific technology and content distribution agreements:

• AWS is the Official Cloud Infrastructure Provider for the WHOOP UCI Mountain Bike World Series.
• Events.com partnership term runs from 2025 through 2028.
• The company ended Q2 2025 with 125.7 million global streaming subscribers.
• The Studios business is expected to generate $2.4 billion of profit for the full year 2025.
• The Streaming segment is anticipated to deliver a profit of approximately $1.3 billion in 2025.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Key Activities

You're looking at the core actions Warner Bros. Discovery, Inc. (WBD) is taking right now to manage its massive content engine and navigate a major corporate split. Honestly, the focus is split between driving performance in the content units and executing a complex financial maneuver.

Producing premium film, TV, and gaming content (e.g., DC, HBO).

The Studios segment is definitely showing muscle. For the third quarter ending September 30, 2025, Studios revenue jumped 24% ex-FX to $3.321 billion. This was fueled by theatrical releases, which saw theatrical content expense increase 79% ex-FX. The company still projects the Studios business will hit a profit of at least $3 billion for the full year 2025.

Operating and expanding the Max and Discovery+ global streaming platforms.

The Direct-to-Consumer (DTC) side is growing its reach, even as the domestic revenue picture gets complicated. Global streaming subscribers hit 128.0 million by the end of Q3 2025, adding 2.3 million net additions that quarter. Streaming revenue itself was flat at about $2.6 billion for the quarter. Still, Streaming Adjusted EBITDA climbed 24% ex-FX to $345 million. The company is aiming for at least 150 million subscribers by the end of 2026.

Here's a quick look at the streaming unit's Q3 2025 performance metrics:

Strategic debt reduction; repaid $1.2 billion in Q3 2025.

Managing that large debt load is a major activity. In Q3 2025 alone, WBD repaid $1.2 billion of debt, which included $1.0 billion of the bridge loan facility. The company ended the quarter with $34.5 billion in gross debt and a net leverage ratio of 3.3x. Cash on hand remained solid at $4.3 billion. This proactive management positions them for the next steps.

Managing global sports rights and linear network affiliate renewals.

The Global Linear Networks segment is clearly under pressure from cord-cutting trends. Revenue for this segment fell 22% ex-FX to $3.883 billion in Q3 2025, and profit tumbled 20% to $1.7 billion. This decline was partly due to the absence of the 2024 Olympics revenue compared to the prior year. Affiliate revenue was hurt by continued domestic linear pay TV subscriber declines.

Key financial context for the linear business:

• Global Linear Networks Revenue (Q3 2025): $3.883 billion
• Global Linear Networks Revenue Change (Q3 2025 vs. Prior Year): -22% ex-FX
• Global Linear Networks Profit Change (Q3 2025 vs. Prior Year): -20%
• Content Revenue Impact: Decreased 3% ex-FX due to sublicensing of Olympic sports rights in the prior year

Executing corporate restructuring to split the company for a potential sale/spin-off.

This is the biggest strategic activity underway. In October 2025, the Board initiated a review of strategic alternatives following unsolicited interest. This followed earlier plans to separate into two companies. As of early December 2025, the Board approved a definitive agreement where Netflix will acquire Warner Bros. (studios, HBO Max, HBO). The total enterprise value for this part of the deal is approximately $82.7 billion, valuing WBD shares at $27.75. The Global Networks business, which will become a new standalone company called Discovery Global, is expected to separate first, now targeted for completion in Q3 2026.

The deal structure involves WBD shareholders receiving $23.25 in cash and $4.50 in Netflix common stock per share. Finance: draft the cash flow impact analysis for the Q4 2025 separation costs by next Tuesday.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Key Resources

You're looking at the hard assets that underpin Warner Bros. Discovery, Inc.'s (WBD) entire operation as of late 2025. These aren't abstract concepts; these are the tangible and intangible items that generate revenue and drive strategy, especially as the company moves toward its planned separation.

Iconic intellectual property (IP) is the bedrock. This includes the deep catalogue of franchises that Netflix agreed to acquire as part of the studio and streaming assets. We're talking about the entire DC Universe, the enduring appeal of Harry Potter, and prestige television like Game of Thrones, alongside sitcom staples like Friends and The Big Bang Theory.

The global content library, which is part of the assets valued in the Netflix deal, represents a massive asset base. The Enterprise Value agreed upon for the studios and streaming business, which includes this library, was approximately $82.7 billion, with an equity value of $72.0 billion as of December 2025. To give you a sense of the theatrical engine driving this, the Warner Bros. Motion Picture Group surpassed $4 billion in global box office revenue for 2025 alone.

The scale of the direct-to-consumer business is significant, even as the company evaluates its future structure. As of the third quarter of 2025, WBD reported a global streaming subscriber base of 128.0 million.

Here's a quick look at the key performance metrics from that Q3 2025 report:

The global distribution infrastructure is vast, supporting both the linear and streaming components. As of June 2025, the assets intended for the Global Networks spin-off reached audiences in 200 countries and territories and spanned 68 languages. This reach is critical for monetizing the content library globally.

Finally, the physical and human capital, including key creative talent and studio facilities like the Warner Bros. Studios, remains a core resource. The success of the Motion Picture Group in 2025, hitting over $4 billion at the box office with only 11 film releases, speaks directly to the quality of the creative talent and production capabilities within that unit.

You should track the separation plan closely, as the value of these resources will be split between the new Streaming & Studios entity and the Global Networks entity, expected by mid-2026. Finance: draft 13-week cash view by Friday.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Value Propositions

The value propositions Warner Bros. Discovery, Inc. (WBD) offers to its customers center on a deep library of intellectual property (IP) delivered across premium and flexible platforms, anchored by tentpole theatrical events.

Premium, high-quality, exclusive scripted content (HBO Originals).

The value proposition is rooted in the prestige and perceived quality of its premium scripted library, which drives subscriber acquisition and retention for the Max streaming service. The company is on a clear path towards at least 150 million streaming subscribers by the end of 2026, having ended Q3 2025 with 128.0 million global streaming subscribers, an increase of 2.3 million sequentially. This segment is a significant profit driver, expected to contribute over $1.3 billion in Adjusted EBITDA for the full 2025 year.

Broad, unscripted, and factual entertainment across multiple genres.

This value is delivered through the Discovery content portfolio, which is being strategically separated into a distinct entity, Discovery Global, as part of a planned mid-2026 split. While the Global Linear Networks segment saw revenues decrease 22% ex-FX to $3,883 million in Q3 2025, the content remains a core part of the overall offering, particularly within the Discovery+ component of the streaming base.

Live sports and news content via TNT Sports, CNN, and Eurosport.

The company is actively valuing this content by preparing to move it to separate platforms, signaling its distinct worth to specific audiences. Warner Bros. Discovery announced plans to launch a standalone TNT Sports app in 2026 and has already removed the CNN feed from the main Max service in November 2025 to prop up CNN's new standalone service. This separation highlights the premium nature of these live offerings.

Flexible consumption via ad-supported and ad-free streaming tiers.

WBD offers choice in how consumers access its content, balancing premium ad-free experiences with lower-cost, ad-supported options. The company is pushing its ad-lite model, though advertising revenues overall decreased 17% ex-FX in Q3 2025, as growth in ad-supported streaming subscribers was offset by domestic linear audience declines. The Average Revenue Per User (ARPU) reflects this mix shift:

The domestic ARPU of $10.40 compares to $11.16 in Q2 2025, showing the impact of subscriber mix changes.

Theatrical event experiences with major box office hits like Superman.

The theatrical slate provides massive cultural moments and significant revenue spikes, validating the IP. The Warner Bros. Motion Picture Group became the first studio to surpass $4 billion in 2025 global box office revenue. The value derived from these events is substantial, as demonstrated by key releases:

• Superman opened to $125 million domestically and earned $613 million globally, with an expected theatrical profit of around $125 million.
• Superman was part of an unprecedented streak of seven consecutive releases opening above $40 million at the domestic box office.
• Theatrical content revenue, excluding the impact of the 2024 Olympics, increased 23% ex-foreign exchange in Q3 2025.

Here's the quick math on the overall Q3 2025 performance that underpins these value streams:

What this estimate hides is the ongoing challenge in the linear business, where profit fell 20% to $1.7 billion in the quarter, cementing the need to focus on the growth areas like streaming and studios.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Customer Relationships

You're managing customer relationships for a massive global entertainment entity, so the scale is the first thing that hits you. As of the end of the third quarter of 2025, Warner Bros. Discovery, Inc. (WBD) was supporting 128.0 million global streaming subscribers across its Max and Discovery+ platforms. This base is growing, with 2.3 million net additions in Q3 2025 alone, putting the company on a clear path toward its goal of at least 150 million by the end of 2026.

The relationship management for the direct-to-consumer (DTC) side relies heavily on automation and data to keep those millions engaged. Personalized recommendations are baked into the Max experience, which is crucial given the shift in revenue mix. For instance, the domestic streaming Average Revenue Per User (ARPU) saw an 8% decrease to $11.16 in Q2 2025, largely due to the broader wholesale distribution of the ad-supported Max Basic tier. Still, the streaming advertising revenue in that same quarter surged 17% to $282 million, directly tied to the growth in ad-lite subscribers, showing the success of this tiered, personalized approach. The streaming segment's adjusted EBITDA grew 24% ex-foreign exchange year-over-year in Q3 2025, with the segment expected to contribute over $1.3 billion in adjusted EBITDA for the full year 2025.

For the business-to-business side, dedicated account management is non-negotiable for major advertisers and linear network affiliates. These relationships are under pressure, though. The Global Linear Networks segment saw domestic linear pay TV subscribers decline 9% in Q3 2025, and overall advertising revenues decreased 17% ex-FX in Q3 2025, as linear audience declines offset streaming ad-lite growth. Keeping these key distribution and advertising partners satisfied requires high-touch service, especially as the linear footprint remains vast, reaching 1.1 billion unique viewers across 200 countries and territories.

Direct-to-consumer engagement is also fostered through community building, moving beyond simple transactions. Warner Bros. Discovery, Inc. uses direct feedback loops to inform content and product development. For example, their research team utilizes a gamified Member Tier program to drive participation in feedback activities. One of these subcommunities achieved an impressive response rate of up to 90%, showing deep fan investment. This level of engagement helps the company standardize tested shareback strategies across new global communities.

Handling the sheer volume of users requires robust support infrastructure for billing and technical issues across all platforms. The support systems must service the 128.0 million streaming subscribers and the audience accessing content via the linear networks. The complexity is high, as evidenced by the domestic ARPU drop linked to wholesale distribution deals, which likely generates complex billing inquiries that customer service must resolve. Here's the quick math: supporting 128.0 million streaming users plus the linear audience means support operations must handle millions of potential touchpoints daily.

The relationship management structure can be summarized by the scale of the user base and the dual focus on high-touch B2B partners versus automated B2C personalization:

The company's focus on direct feedback is evident in its internal processes, which aim to increase access to research and insights across the organization. This commitment to understanding the audience directly informs the content and product development, which is the core of the value proposition delivered through these customer relationships. The success of the international rollout, adding 3.2 million subscribers internationally in Q2 2025, shows the relationship strategy is scaling globally.

You'll want to watch the domestic linear audience declines, which were 26% in Q3 2025, as that directly pressures the need for high-quality dedicated account management to retain linear affiliate fees. Still, the overall streaming segment profitability is improving, with an expected $1.3 billion in adjusted EBITDA for 2025.

The key relationship touchpoints involve:

• Automated personalization driving ad-lite adoption.
• Dedicated management for linear affiliates and major advertisers.
• Gamified research communities for direct fan feedback.
• Scalable technical and billing support for 128.0 million+ streamers.

Finance: draft 13-week cash view by Friday.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Channels

You're looking at the channels Warner Bros. Discovery, Inc. uses to get content to the customer as of late 2025. It's a mix of legacy and digital, and the numbers show the transition is still in full swing.

For the three months ended September 30, 2025, total reported revenues for Warner Bros. Discovery, Inc. were $9.0 billion, a 6% decrease compared to the prior year quarter, though flat excluding the impact of the 2024 Olympics in Europe.

Direct-to-Consumer (DTC) streaming platforms: Max and Discovery+.

The DTC side is where the growth story is focused, aiming for scale. Global streaming subscribers reached 128.0 million at the end of Q3 2025, adding 2.3 million net subscribers sequentially. The company maintains its projection for at least 150 million streaming subscribers by the end of 2026.

The segment posted revenue of $2.633 billion in Q3 2025, which was relatively unchanged compared to the prior year quarter. The streaming business is expected to generate at least $1.3 billion in Adjusted EBITDA for the full year 2025. Profit for the streaming segment specifically climbed 19% to $345 million in the quarter.

Subscriber distribution across the platforms shows a clear international lean:

• US streaming subscribers: 58 million.
• Ex-US streaming subscribers: 70 million.
• International subscribers grew 21% year-over-year in Q3 2025.

Global Linear TV Networks: CNN, TNT, TBS, Discovery Channel, HGTV.

The traditional linear networks continue to face headwinds from subscriber loss, which affects distribution revenue. Global Linear Networks revenues for Q3 2025 were $3.883 billion, a 22% decrease ex-FX from the prior year quarter. Profit for this segment tumbled 20% to $1.7 billion in the same period.

Distribution revenue from these linear channels fell 8%, largely due to a 9% decrease in domestic linear pay TV subscribers. Advertising revenue was down 17% ex-FX, or $1.19 billion in Q3 2025.

Theatrical distribution for major motion pictures.

Theatrical performance provided a significant boost to the Studios segment. Theatrical revenue increased 74% ex-FX in Q3 2025 due to strong box office results. Warner Bros. surpassed $4 billion in 2025 global box office revenue after releasing just 11 films year-to-date.

Key film grosses contributing to this channel's success include:

• DC's Superman: $615 million worldwide gross.
• Weapons: $267 million worldwide gross.
• The Conjuring: Last Rites: More than $490 million globally.

Digital storefronts and retail for video games and home entertainment.

While specific revenue for digital storefronts and home entertainment isn't isolated in the top-line segment reporting, content revenue context gives us a clue. Games content expense decreased 51% ex-FX in Q3 2025, which was primarily driven by $122 million of impairments recorded in the prior year quarter. Home entertainment revenues were noted as being lower in Q1 2025 compared to the prior year due to the release slate timing.

Consumer Products retail channels for licensed merchandise.

Specific revenue figures for Consumer Products retail channels were not explicitly broken out in the Q3 2025 segment reporting provided, which groups content revenue broadly. The overall Studios segment revenue, which encompasses theatrical, home entertainment, and content licensing, was $3.321 billion in Q3 2025, up 23% ex-FX.

Here's a quick look at the major revenue-generating channels for the three months ended September 30, 2025:

The combined Streaming & Studios revenue was $5.279 billion, an 8% increase reported.

If onboarding takes 14+ days, churn risk rises, which is a constant consideration for the 128.0 million streaming base. Finance: draft 13-week cash view by Friday.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Customer Segments

You're looking at the customer base for Warner Bros. Discovery, Inc. (WBD) as the company navigates its planned separation and the ongoing media shift. Honestly, the customer segments are clearly splitting between the legacy linear world and the digital-first streaming future.

Global streaming subscribers seeking premium and broad content represent the growth engine. As of the third quarter of 2025, Warner Bros. Discovery, Inc. reported a total of 128 million global streaming subscribers. This was after adding 2.3 million net subscribers in that quarter alone. The company is definitely on a path toward its stated goal of reaching at least 150 million subscribers by the end of 2026. The growth is heavily weighted internationally, following successful launches like HBO Max in Australia.

Domestic linear pay-TV subscribers (a declining but high-ARPU base) are shrinking, but they still provide significant, albeit shrinking, revenue. In the second quarter of 2025, domestic linear pay TV subscribers declined by 9%. This trend is part of a larger industry movement, with pay-TV subscriptions plummeting by more than 20% year-on-year across major markets as of late 2025. This segment is high-ARPU (Average Revenue Per User) but is contracting fast.

Global advertisers targeting specific demographics across linear and streaming are a crucial, though pressured, segment. In the third quarter of 2025, total advertising revenue for all platforms was down 16% to $1.4 billion. The linear TV ad business is suffering the most, with global linear TV networks sinking by a massive 20% to $1.19 billion in Q3 2025 advertising revenue. Still, the ad-lite streaming tier is growing, as seen by the 14% advertising revenue increase to $235 million in that segment for Q3 2025.

Theatrical audiences for major film releases are proving highly engaged, driving significant content revenue. Warner Bros. Discovery, Inc. was the first studio in 2025 to cross $4 billion at the worldwide box office, achieving this milestone with only 11 films as of mid-September. The domestic box office gross year-to-date as of July 2025 stood at $1.32 billion. The theatrical revenue segment saw a 74% increase in the third quarter of 2025.

Here's a quick look at how the key revenue-driving customer groups performed in the third quarter of 2025:

Wholesale distributors (cable, satellite, telecom companies) are key partners in the linear ecosystem and increasingly in streaming distribution. The domestic linear pay-TV subscriber decline directly impacts affiliate fees from these distributors. Furthermore, the domestic streaming ARPU in Q2 2025 dropped 8% to $11.16, which was partly due to the broader wholesale distribution of the HBO Max Basic with Ads tier. International ARPU for streaming was reported at $3.85 in the same quarter.

The composition of the streaming customer base shows a clear international tilt:

• International streaming subscribers grew from 59.8 million to 64.6 million in Q1 2025.
• Domestic streaming subscribers grew from 57.1 million to 57.6 million in Q1 2025.
• The Q2 2025 domestic streaming ARPU was $11.16.
• The company is projecting $2.4 billion in total Studios profit for 2025.
• The company is projecting a total Studios profit of $3 billion in the longer term.

If onboarding for new international wholesale partners takes longer than expected, churn risk rises.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Warner Bros. Discovery, Inc. (WBD) engine as of late 2025, and honestly, it's dominated by things that don't change much quarter-to-quarter, plus some big one-time hits.

The sheer scale of content investment means high fixed costs are baked in. This is where you see the amortization of those big film and series budgets hit the books. For example, in Q3 2025, the net loss of $148.0 million included a significant $1.3 billion pre-tax charge covering acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses. That $1.3 billion is a major non-cash component reflecting past content spending decisions.

Debt servicing is another massive, non-negotiable cost. As of September 30, 2025, Warner Bros. Discovery, Inc. carried $34.5 billion in gross debt. This debt load translates directly into substantial interest expense, which you need to factor in before you even get to operating profit.

Restructuring and integration costs continue to be a drain as the company moves toward its planned separation. Beyond the amortization charge, Free Cash Flow in Q3 2025 was unfavorably impacted by approximately $500 million in separation-related items. This shows the real cash cost of unwinding the merger structure.

Technology and distribution costs are tied up in keeping the global streaming platform running. Streaming operating expenses in Q3 2025 were reported at $2,288 million, a 3% decrease ex-FX from the prior year quarter, showing some cost control even as they expand internationally.

Marketing and theatrical release costs are variable but significant, especially when a major slate is active. Studios operating expenses increased 10% ex-FX to $2,626 million in Q3 2025. This was partly driven by theatrical marketing and overhead costs, with theatrical content expense itself jumping 79% ex-FX due to strong box office performance from titles like Superman.

Here's a quick look at how some of the key operating expense buckets stacked up in Q3 2025:

To be fair, the total operating expenses for the twelve months ending September 30, 2025, were $37.312B, which represented a 25.31% decline year-over-year, showing the overall cost-cutting efforts are having a material impact on the run rate. Still, the fixed nature of debt and amortization keeps the floor high.

You should watch the marketing spend closely, especially with the planned international streaming launches. The company is trying to manage SG&A, which decreased 13% ex-FX in Q3 2025, largely due to lower marketing costs overall, but theatrical marketing is pushing that number back up.

The cost structure is clearly bifurcated:

• Fixed/Non-Operating Costs: Debt interest and content amortization charges.
• Operating Costs: Content production, technology platform maintenance, and marketing spend.

Finance: draft 13-week cash view by Friday.

Warner Bros. Discovery, Inc. (WBD) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Warner Bros. Discovery, Inc. as of late 2025, based on the latest reported figures from the third quarter of 2025. This is where the money actually comes in, and it's a mix of recurring digital fees and big-ticket content sales.

The overall top line for Warner Bros. Discovery in Q3 2025 was $9.0 billion in total revenues, a 6% decrease ex-FX from the prior year quarter, though total revenues excluding the impact of the 2024 Olympics in Europe were flat ex-FX.

Subscription Fees from Max and Discovery+ Streaming Services

The direct-to-consumer (DTC) business, which houses Max and Discovery+, is a major focus. As of the end of Q3 2025, Warner Bros. Discovery reported 128.0 million global streaming subscribers across its services. The company is still tracking toward its goal of at least 150 million subscribers by the end of 2026.

For Q3 2025, streaming revenues were relatively unchanged compared to the prior year quarter, with subscriber-related revenues specifically increasing 1% ex-FX. The streaming segment itself posted a profit of $345 million in the quarter, a 19% climb year-over-year.

Affiliate Fees from Cable/Satellite Providers for Linear Networks

Revenue from the Global Linear Networks segment, which includes affiliate fees, saw a significant drop. Total Global Linear Networks revenues decreased 23% ex-FX to $3,883 million in Q3 2025. Distribution revenue within this segment decreased 8% ex-FX. This decline was primarily driven by a 9% decrease in domestic linear pay TV subscribers, which was only partially offset by a 2% increase in domestic affiliate rates. Excluding the impact of the 2024 Olympics in Europe, Global Linear Networks revenues decreased 12% ex-FX.

Advertising Revenue from Linear Networks and Ad-Lite Streaming Tiers

Advertising revenue across the board took a hit, decreasing 17% ex-FX in Q3 2025. This was because growth in ad-lite streaming subscribers was overshadowed by domestic linear audience declines. However, on the streaming side, total streaming advertising revenue increased 14% year-over-year, fueled by the growth in the ad-supported tier.

Theatrical Box Office and Content Licensing

The Studios segment was a bright spot, with revenues increasing 23% ex-FX to $3,321 million in Q3 2025, as you noted. Content revenue, a key part of this, increased 26% ex-FX. Theatrical revenue specifically jumped 74% ex-FX, driven by strong box office performance from releases like Superman and The Conjuring: Last Rites, alongside higher content licensing. For the year 2025, Warner Bros. surpassed $4 billion in global box office revenue after releasing 11 films. The Studios segment profit for the quarter reached $695 million, up from $308 million a year ago.

Here's a quick look at the segment revenue breakdown for Q3 2025:

Home Entertainment, Video Game Sales, and Consumer Product Licensing

These activities fall primarily under the Studios segment, but specific standalone figures are less detailed in the top-line summary. Content revenue, which encompasses licensing and home entertainment sales, increased 26% ex-FX. However, the video game component showed weakness; games revenue fell 23% in Q3 2025, attributed to lower carryover from prior periods. Consumer product licensing is a driver within the overall Studios revenue growth, but a distinct revenue amount for this stream isn't broken out separately from the $3,321 million Studios total.

You should watch the domestic linear TV revenue, which decreased 13% ex-FX, driven by lower initial telecast deliveries.