The Opportunists Circling the Scene
As the old giants begin to crumble, a few clever players are positioned to pick up the most valuable pieces. Look at Netflix. For years, it was the odd one out, a pure-play streaming company that ploughed every penny back into its one and only business. While its rivals were distracted by their sprawling empires, Netflix built a global powerhouse. Now, instead of facing a monolithic Warner Bros. Discovery, it will face a smaller, more focused streaming competitor, one that might be more willing to strike content deals to fill its pipeline.
Then you have a company like Roku. To me, Roku is the landlord of the streaming world. It doesn't make the shows, it just owns the platform where everyone wants to live. As these media companies unbundle, they become more reliant on neutral platforms like Roku for distribution and advertising. A newly independent Warner streaming service is far more likely to need Roku’s advertising technology than the old conglomerate was, which foolishly thought it could do everything itself. More tenants mean more rent for the landlord. It’s a simple, and potentially very profitable, equation.
