HBO and HBO Max Added 3 Million New Subscribers in Q1

The combined services have 76.8 million subscribers, AT&T reported Thursday

BURBANK, CALIFORNIA – OCTOBER 29: Tony Goncalves, Chief Executive Officer of Otter Media, speaks onstage at HBO Max WarnerMedia Investor Day Presentation at Warner Bros. Studios on October 29, 2019 in Burbank, California. (Photo by Presley Ann/Getty Images for WarnerMedia)

HBO and HBO Max added 3 million subscribers in the first quarter of 2022, bringing their total to 76.8 million worldwide.

The growth was announced Thursday in AT&T’s first earnings report since spinning off WarnerMedia in a $55 billion merger deal with Discovery that was completed earlier this month.

It also marked a stark contrast to Netflix’s surprising loss of 200,000 subscribers worldwide in the same quarter — a setback that led to a 35% nosedive in the streaming giant’s stock price on Wednesday.

HBO and HBO Max added 1.8 million domestic subscribers in Q1, reaching a total of 48.6 million. The 3 million quarterly uptick also matched the growth in Q1 2021 in the midst of the pandemic. Subscription revenues also climbed 4.4% to $4 billion — which drove WarnerMedia revenue to $8.7 billion — a 2.5% increase from the year before.

Meanwhile, ad revenue dipped 3% to $1.7 billion, a further sign of weakening in the linear TV viewership.

In addition, the company cited “continued investments in HBO Max” and the just-launched CNN+ streaming service for a 32% drop in operating income at WarnerMedia.

In a statement, AT&T CEO John Stankey noted the spinoff of WarnerMedia just four years after the telecom giant purchased the entertainment conglomerate in a failed bid to diversify into content. “AT&T has entered a new era,” Stankey said.