Impact of Streaming Services

Disney’s Earnings Didn’t Just Reveal a Quarter — They Revealed a Strategy Shift Most headlines today will flatten Disney’s Q4 into a simple story: streaming up, revenue a little soft, linear TV still fading. But if you actually read between the lines, this quarter tells a much bigger story about where Hollywood is heading. Here are the signals that actually matter: 1️⃣ The center of gravity is shifting from “content” to “experiences.” The Experiences segment once again carried the quarter. Double-digit operating income. International especially strong. This isn’t a “nice win.” It’s a business transformation. It’s The Walt Disney Company quietly saying: theatrical doesn’t end the journey — it begins it. Look at Lilo & Stitch: mid-budget movie → huge streaming wave → $4B in retail → character momentum showing up across parks. That’s the new model. IP that lives across screens and spaces — and monetizes every step. 💡If you care about licensing, franchise health, global momentum… this is the signal to watch. 2️⃣ Streaming is no longer a subscriber race — it’s becoming the operating system. The DTC business posted another profitable quarter. But the bigger move is strategic: Disney is positioning streaming as the connective layer of the entire company. Streaming is now where theatrical, TV, social, and products ladder into each other. It’s where franchise momentum is measured. It’s how stories travel globally. 💡Not “another Netflix.” More like the nerve center of the entire Disney ecosystem. 3️⃣ Linear TV isn’t declining — it’s being deprioritized. Yes, the Networks segment dropped again. Yes, ad revenue took a hit. And yes, the YouTube TV standoff hurts. It’s as if they’ve already accepted where this ends and are now architecting around it. 💡Linear becomes a bonus — not the business. 4️⃣ Experiences are becoming the profit engine everyone underestimated. Parks and cruises aren’t just outperforming. They’re outpacing every other part of the company in a way that’s structurally meaningful. Because experiences create something content can’t: decades-long loyalty. A hit movie gives you a weekend. A hit show gives you a month. A hit attraction gives you repeat visits, lifetime spending, and memories people pass down. That’s why CapEx keeps flowing here. It’s a compounding engine. 💡And it’s why every studio with a recognizable IP library is now studying the Disney playbook. 5️⃣ The interesting part isn’t Q4 — it’s the setup for FY26 and FY27. Disney guided to double-digit EPS growth for the next two years. Not bold optimism — more like quiet confidence. The company is preparing for a world where: ⌙ streaming = core infrastructure ⌙ experiences = highest-margin growth ⌙ theatrical = premium marketing vehicle ⌙ linear = fading but managed ⌙ consumer products = global engine 💡 If you map this forward, Disney looks less like a traditional studio and more like a vertically integrated IP platform. #Media #Disney

Amazon's $68 billion ad machine now has access to 190 million Netflix viewers. Here's what it means for advertisers. Amazon's ad business makes $68 billion a year. Now advertisers can target right audiences on Netflix through expanded targeting capabilities via Amazon DSP. Starting Q2 2026, brands buying ads on Netflix through Amazon's platform can now use Amazon's shopping data to target their 190+ million viewers. Think about what this means. Amazon knows what a huge chunk of U.S. households buy, browse, and search for. Netflix knows what they watch. That data is now being combined for targeting. So a skincare brand can target someone who searched for serums on Amazon - while they're watching a show on Netflix. Here's why this matters: → Netflix made $1.5 billion from ads in 2025 and is targeting $3 billion this year  → Early tests are already beating previous benchmarks → A large share of new signups now choose the ad-supported plan. Till now, streaming ads were about showing up in front of millions and hoping it works. This changes that. Now brands can connect what people watch to what they actually buy. For anyone running ads, this is worth paying attention to. Shopping and streaming just became one ecosystem. How do you think this will change the way brands plan their ad budgets?

The main streaming players collectively made $6B in profits in Q1'25, a marked turnaround from a year ago. Higher subs, more flexible pricing, higher ad sales, international launches, and cost containment are part of the story — but how did we get here? After Netflix kicked off the streaming earnings season last month, all companies in the space have reported significant increases in Operating Income or EBITDA compared to a year ago. Netflix still leads the pack with $3.3B in profits, but YouTube, Disney, WBD, and Spotify have collectively brought in $2.5B by my estimate (including YouTube, which doesn’t break out operating income or sub revenue). Peacock lost $0.2B in the quarter — a reduction from a year ago. Paramount will report their results this afternoon. I haven’t yet attempted to model Amazon Prime Video’s operating income, but industry sources suggest they’re also in the black this year. Overall, it’s a marked improvement from last year, when Netflix was making more than 100% of the profits. It wasn’t just increased subscribers that made the difference (through international launches, new events, and crackdowns on password sharing at Netflix and Disney). Companies introduced ad tiers, allowing them to offer lower-priced options to many consumers; bundles (especially Disney/WBD), which helped reduce churn; and improved ad sales. And throughout, they contained costs — and in some areas, reduced them. Amortization expenses for some of the most expensive shows from 2021–2022 are now coming off the schedule. After the close of Q3'24, I published a post calling that quarter an inflection point in streaming. When you're crossing the line from losses to profit in a largely fixed-cost business, improvements can come relatively fast. What do you think will be the biggest driver of streaming profitability for the rest of the year?

Everyone's reading the Fox–Roku deal as a streaming play. Look closer and it's something more specific: Fox just became one of the biggest free, ad-supported TV businesses in America — on purpose. Start with what Fox already had. Tubi, the free ad-supported service it bought for $440M in 2020, now reaches more than 100 million monthly users. It's quietly become one of the most successful businesses in streaming, and it doesn't charge anyone a cent. Now add what Roku brings. The Roku Channel — also free, also ad-supported — already commands roughly 3% of all US streaming viewership, fifth overall behind only YouTube, Netflix, Disney, and Prime Video. Plus the platform underneath it, the home screen on 100M+ households, and an advertising engine that pulled in $613M in a single quarter, up 27% year over year. Put Tubi and The Roku Channel under one roof, wire in Fox's live sports and news, and you don't have a Netflix competitor. You have something different: a free-to-watch, ad-funded media machine with its own distribution and its own first-party data. Here's why I think this is the sharper bet. The subscription wars are exhausting the consumer. People are canceling, rotating, and resenting the fifth $16/month charge. Meanwhile the fastest-growing corner of streaming is the free, ad-supported one — because "free" never churns. Fox is leaning all the way into the model everyone else treats as the consolation prize. Content gets commoditized. Free distribution plus data plus ad targeting compounds. Wall Street isn't convinced yet — Fox shares fell as much as 18% on the news. But strip out the subscription framing and the logic gets clearer: Fox isn't trying to win the war Netflix is fighting. It's building a different business entirely. Do you think the future of streaming is another subscription — or free, ad-supported, and everywhere?

Netflix and Disney+ will soon look a lot more like TikTok. The major streaming platforms are going all-in on short-form video as part of a broader shift that’s reshaping viewing habits. Rather than compete with TikTok on UGC, they’ll surface clips from longer-form content like live events, stand-up specials, and original series, designed to meet short-form cravings while driving users back into full-length viewing. 𝗗𝗶𝘀𝗻𝗲𝘆 𝗵𝗮𝘀 𝗮𝗹𝗿𝗲𝗮𝗱𝘆 𝗯𝗲𝗴𝘂𝗻 𝗲𝘅𝗽𝗲𝗿𝗶𝗺𝗲𝗻𝘁𝗶𝗻𝗴: → ESPN rolled out vertical videos to recap game highlights and offer commentator analysis. → ABC News launched a daily short-form show, What You Need to Know. Netflix has been testing a vertical video feed that serves up clips from its original titles to inspire users to start a movie or series. 𝗧𝗵𝗶𝘀 𝘁𝗮𝗽𝘀 𝗶𝗻𝘁𝗼 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗳𝗮𝘀𝘁𝗲𝘀𝘁-𝗴𝗿𝗼𝘄𝗶𝗻𝗴 𝗽𝗵𝗲𝗻𝗼𝗺𝗲𝗻𝗮 𝗶𝗻 𝗲𝗻𝘁𝗲𝗿𝘁𝗮𝗶𝗻𝗺𝗲𝗻𝘁: 𝗺𝗶𝗰𝗿𝗼𝗱𝗿𝗮𝗺𝗮𝘀. → The global microdrama industry is projected to reach $26bn in annual revenue by 2030. → Vertical mini-dramas have surged over the past few years. → Dedicated apps like DramaBox and ReelShort are seeing subscriber growth but still operate at a loss due to high customer acquisition costs. For Netflix and Disney+, that CAC pressure is far less acute. They already have hundreds of millions of subscribers to seed short-form discovery natively. The line between cinema, streaming, and social content continues to blur, and the competitive set is no longer just other streamers. It’s the entire entertainment ecosystem. → The Oscars and the NFL are on YouTube. → Apple is competing for Emmys and Oscars. In 2025, Netflix delivered $45.2bn in revenue, with ad revenue rising above $1.5bn. The company crossed 325m paid subscriptions in Q4, yet a barrage of price hikes, ads, mergers, and live sports rights battles has left streaming increasingly similar to the cable era it aimed to replace. That’s fueled subscription fatigue. Younger viewers in particular are shifting time and money toward free streaming services, physical media, and social platforms. 40% of US streaming subscribers plan to cancel at least one service in the next 12 months (eMarketer). 𝗠𝘆 𝘁𝗮𝗸𝗲: As an alum of both Disney and TikTok, I’m not sure this convergence is good in the longer term. As product differentiation decreases, Disney and Netflix are betting that their content will outshine TikTok. Otherwise, they risk falling into a trap. What’s your take?

As a fan of 1) Disney the brand 2) business strategy analysis 3) business model disruption and reinvention… Disney’s earnings call yesterday was 🔥. The numbers tell a masterclass story in how a legacy brand adapts and thrives in the ever-shifting entertainment industry. Some takeaways: 1. Fortitude for a Long-term Vision Disney+ is now driving profits, with $321M this quarter—a $700M improvement over last year. This was a cash burning MACHINE. But they stuck with their vision and have turned the corner. But sustaining profitability in this competitive market will require Disney to continuously balance subscriber growth, pricing strategies, and content investment. Which brings me to… 2. The Tentpole Effect: Blockbusters (Still) Fuel the Ecosystem "Inside Out 2" ($1.7B) and "Deadpool & Wolverine" ($1.3B) are much more than box office wins—they’re ecosystem drivers. These releases spark a chain reaction across streaming, parks, and merchandising. Few companies can leverage content this effectively across platforms (including other streamers). Disney’s strategy here is (still) brilliant: tentpole films & IP become not just entertainment but touchpoints across every facet of the brand (which extends for yeeears). I always think of Walt Disney’s napkin flywheel doodle, or “synergy map”, that he drew out 65+ years ago. At the center of it all are the theatrical blockbuster releases. And Bob Iger made it clear he carries that mantle forward. 3. Price Hikes + Ad Tiers: Smart Monetization Disney+ can raise prices on its ad-free tier, and it still has multiple paths to increased profits. The first, you can just pay the higher price. The second? You step down to the ad-supported tier (over half of new U.S. Disney+ subscribers are choosing the ad-supported tier). But here’s the rub: this ad-supported tier creates dual revenue streams, subscription fees PLUS ad dollars, allowing Disney to increase profitability without alienating cost-conscious audiences. And the ad revenue upside is likely higher than subscription revenue upside. To paraphrase Ben Thompson – the end-state of any large consumer base is advertising. It IS the end-state. It is not an interim step. 4. The Linear TV Conundrum TV networks, once Disney’s cash cow, are shrinking fast (Q4 income down 38%). With ESPN Flagship—a fully streaming version of ESPN—slated for 2025, Disney is positioning itself for a post-cable world. The integration of ESPN into Disney+ is a smart move, but streaming sports is still a tough financial nut to crack. Can it replicate the margins of traditional TV? That’s the billion-dollar question. Final Thoughts Disney’s Q4 earnings tell a story of resilience, reinvention, and relentless focus on the future. As a fan, I admire how the brand continues to bring joy to millions. As a business enthusiast, I’m fascinated by the strategic pivots that make it all possible (but, from the same underlying blueprint). This isn’t just a business—it’s Disney magic at scale.

Amazon just did to streaming what Google did to search in 2005. And most e-commerce brands are sleeping on it. - Here's what changed: Netflix, Spotify, and Roku opened their ad inventory to Amazon's DSP. That means Amazon can now layer a decade of purchase data from 300M+ people over the shows they're watching. Someone buys dog food on Amazon every month → sees your dog food ad on Netflix → clicks their remote → it's in their cart. Amazon closes the loop from ad to purchase. - Why this matters for e-commerce brands: Google knows what you search. Facebook knows what you engage with. Amazon knows what you bought last Tuesday. That's the difference. You're not targeting "people interested in fitness." You're targeting people who bought running shoes 30 days ago. - And here's the unlock for brands: Your ads aren't just on Amazon anymore. They're on Netflix, Disney+, Roku, Spotify, Thursday Night Football - all through one platform. CTV ads (the big screen, 10ft away) and OTT mobile ads (thumb ready, one foot away). - The creative opportunity: Here's what's interesting, CTV doesn't mean you need $100K commercials. The format is opening up creative experimentation: > Cinematic product shots mixed with lo-fi authenticity. > Polished brand moments blended with raw testimonials. > High production visuals + blocky, direct response style. The brands winning early are testing hybrid formats that wouldn't fly on traditional TV but work perfectly on streaming. It's not "make it look like a Super Bowl ad." It's "make it work for someone on their couch with a remote in hand." - Why this moment matters: We've seen this before. Early Google Ads adopters (2005-2010) built moats that still exist today. Amazon DSP is at that same moment right now. Inventory is underpriced. Competition is light. The brands moving now are building the playbook. In 2 years, this won't feel like an opportunity. It'll feel like table stakes. - The move: If you're selling on Amazon and running paid ads, you need to be thinking about this. Because Amazon just turned streaming TV into a performance channel. And the creative that works there isn't what worked on Meta.

Most streamers are talking at their computer. iShowSpeed is doing backflips in Kenya. That’s not just content. That’s a fundamental misunderstanding of what global reach actually means in 2025. Speed just became the first English-speaking streamer to hit 1 million concurrent viewers. Not by accident. By design. And the gap between him and everyone else isn’t production budget or gaming skill. It’s strategy. Start with this: universal visuals over spoken language. Speed creates content you understand without English. The barking everyone calls ridiculous? It’s also universal. Desktop streamers rely on commentary and conversation. Speed relies on action. You don’t need to speak the language to understand what’s happening on screen. That’s the entire point. Then there’s physical presence. Speed visited 20 African countries in 2026. Before that, China, India, Europe, Indonesia. While most creators optimize their studio setup, Speed optimizes his passport stamps. He goes to the audience instead of waiting for the audience to come to him. Kenya alone gave him 239,000 concurrent viewers and 8.4 million views. Most creators stay home and hope the algorithm finds them. Speed goes to their home. And everything is engineered backwards from the clip. His TikTok sits at 363 million likes. The Europe tour alone generated 2.5 billion views across platforms. Every stream is built for moments that work outside the stream. The clip drives social attention back to the live content. It’s a flywheel, not a one-way broadcast. Desktop streaming optimizes for one platform. Speed optimizes for the entire internet. The gap between regional creators and global creators isn’t talent. It’s understanding that content either crosses borders or it doesn’t. And the ones that do are built differently from the start.

Not sure how true this is at first glance, but a quick breakdown of the numbers suggests it may be spot on. Take Spotify payouts, for example. In the U.S. or Sweden, artists typically earn around $0.008 to $0.01 per stream, while in Nigeria, the rate is closer to $0.0002 to $0.0003. So 1 million streams from Nigeria at $0.0003 = $300 1 million streams from Sweden at $0.008 = $8,000 These rough estimates align with what Donawon is saying. But that’s just the surface. The reason why 1 million streams in Nigeria earns only around $300, while the same number of streams from Sweden or the U.S. can fetch up to $10,000, is largely about purchasing power and economic inequality. Music streaming platforms like Spotify, localize their pricing to match each country’s economy. In Nigeria, a typical subscription costs about 1k -2k per month, compared to around $10 in the U.S. or Europe. That means the revenue per user, and therefore the payout per stream is drastically lower. It is the same reason ads shown to Nigerian users generate far less revenue than those shown to users in wealthier countries. What this means is that even if an artist has 10 million fans in Nigeria, they could still earn less than someone with just 1 million fans in a high-income country. It is not because the music is inferior, it is because the audience’s economic reality limits their power to support creatives financially. This is why musicians, influencers, and entertainers must start seeing themselves as stakeholders in the broader push for economic justice and improved quality of life. The growth of the creative industry depends on people being able to afford subscriptions, buy data, attend shows, and support their favorite artists without breaking the bank. If we want the Nigerian music industry or any local creative economy to thrive, we must also fight for a country where the average person can afford to stream, subscribe, and participate fully. Better governance, a stronger economy, and greater financial inclusion directly translate into better earnings for artists. In short, if your fans stay broke, so do you. That is why speaking up, collaborating with civil society, supporting policies that improve access, and demanding a better system isn’t just activism, it is self-interest. Your next album’s success may depend less on PR and more on policy. The audience is ready. But the economy needs to catch up.

₹36,248 Crore Power Play: How JioStar Is Rewriting India’s Media Economy India doesn’t have a content problem. It has a distribution problem. One platform. 500 million users. 72.5 million watching the same moment, live. That’s not media. That’s infrastructure. Welcome to JioStar’s Super-Platform era. ✅ The FY26 Scorecard 1. Revenue: ₹36,248 Crore 2. Q4 Profit (PAT): ₹419 Crore 3. JioHotstar Users: 500 Million MAUs 4. TV Share: 34.2% of entertainment viewership 5. Peak Concurrency: 72.5 Million 6. Insight: While global OTTs chase profitability, JioStar is already there—at scale. ✅ The 500 Million User Machine - Covers ~60% of India’s internet population - Built on Jio’s 5G + data backbone - Handles the highest live concurrency globally - The World Cup wasn’t just content. It was a stress test of India’s digital backbone. Result: No crashes. No lag. Record monetisation. ✅ Where the Money Is Coming From - AI-Led Advertising: Hyper-local brands now sit beside global advertisers - Targeted Ad Slots: Precision > mass blasting - Phygital Campaigns: One ad spans TV + mobile + app - Translation: Advertisers aren’t buying slots anymore. They’re buying audience intelligence. ✅ The Real Moat: Distribution × Data × Content 1. Distribution: Jio telecom ecosystem 2. Content: Star’s 70+ channels + regional dominance 3. Platform: JioHotstar’s recommendation engine 4. This creates a loop: Watch → Recommend → Retain → Monetize. That’s not streaming. That’s a closed ecosystem. ✅ The Unseen Engine: Data Arbitrage 1. 490M+ mobile users feeding behavioral data 2. Predictive programming replacing gut-based decisions 3. Content greenlit based on actual consumption patterns 4. Add to that: • Shoppable Streaming → Buy while watching • In-stream commerce → Jerseys, food, merchandise Content is no longer the product. Attention is the product. Commerce is the layer. ✅ Why TV Isn’t Dead (Yet) A 34.2% TV share means India still runs on dual screens. TV builds mass awareness. Mobile drives personalisation, and JioStar owns both. ✅ Let Me Share #Rajspectives 1. Media is no longer content-first. It’s distribution-first. 2. The winner isn’t who creates the best show; it’s who owns the pipe. 3. Data is replacing creativity as the first filter. 4. Ads are shifting from visibility to precision targeting. The future of OTT is not subscription, it’s hybrid monetisation and commerce. ₹36,000+ Crore later, JioStar isn’t competing with Netflix or TV channels anymore. It’s building something bigger: A system where content drives attention, attention drives data, and data drives revenue. And at 72.5 million concurrent users, this isn’t just India’s scale. This is a new global benchmark. #finance #commerce #india #digital #Media #strategy