Warner Bros. Discovery says it will beef up ads on its Max streaming service

Core Insights - Warner Bros. Discovery (WBD) plans to increase advertising on its Max streaming service to enhance profitability in the competitive streaming market [2][8] - Max has seen significant subscriber growth, adding 7.2 million subscribers in Q3 2023, bringing the total to 110.5 million [8] - The current ad load on Max is relatively low at 3.4 minutes per hour, which is less than most competitors, indicating potential for growth in ad capacity [3][5] Advertising Strategy - WBD's streaming chief JB Perrette noted that the company is in the "early innings" of expanding its ad scale, suggesting there is room for growth in advertising [3][5] - Max will maintain a lighter ad approach for its premium HBO content, avoiding mid-show ads while exploring new ad formats [4][7] - The company aims to innovate ad formats to attract partners and marketers, indicating a strategic focus on enhancing ad revenue [5] Market Position - Despite the recent subscriber growth, Max holds a minor position in the streaming market, capturing only 1.2% of monthly streaming TV time as of September [9] - In comparison, Netflix added 5.1 million subscribers in the same quarter, highlighting the competitive landscape [9] - WBD reported streaming profits of $289 million in Q3 2023, a significant increase from $111 million in the previous year [8]