More is better! But is it always? Well, for entertainment giant Warner Bros. Discovery (WBD), the notion of more is better is on the way out. Warner is preparing a scaled-down version of its Max streaming platform. The news proved more than good enough for investors, who sent shares blasting up over 6% in Wednesday afternoon’s trading.
Rather than continuing to try and compete with Netflix (NFLX), reports note that Warner is looking to scale down Max, but still looks to land 150 million subscribers total in 2026. Basically, Warner realized that Max was not a “must-have service,” and responded accordingly, cutting back on its kids’ content as well as on unscripted shows.
Instead, Max pivoted to true-crime programming, and “adult-oriented” content that would help distinguish itself from its competitors. Warner has been struggling for some time now; while Sinners and A Minecraft Movie gave its returns a bit of a goose, this was after several high-profile flops. Meanwhile, its linear television operations are in open revolt.
Extra Accounts? Pay Up.
Meanwhile, Warner is taking a slightly different approach to the concept of password sharing. Rather than run everybody out, Warner is instead looking to legitimize the password sharers out there with the Extra Member Add-On feature. Basically, it is a subscription for those who are not paying subscription fees.
The Extra Member Add-On is $7.99 a month, which, oddly, costs more than a “Basic with Ads” package at $6.67 per month when paid for for a year in advance. Even more oddly, the “Basic with Ads” package—indeed, the Standard package as well—allows users to stream on two devices at once, which here, I guess, depends on geography. If you live in the same town or general area, then your Standard package will cover it. Live far enough away, though, and suddenly it becomes suspicious.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 0.6% rally in its share price over the past year, the average WBD price target of $12.60 per share implies 50% upside potential.
