What does Warner's split into two companies mean?

Warner Bros. Discovery is dividing into two separate companies: one will contain its traditional cable TV networks (like CNN, TNT, and Food Network), while the other will focus on streaming services (HBO Max/Max) and movie/TV studios. This split allows the streaming business to operate without being weighed down by the declining cable TV business, potentially making it more competitive against rivals like Netflix and Disney+.

Why would this split benefit other companies in the streaming industry?

When WBD creates a more focused streaming company, it's likely to increase spending on content, marketing, and technology to compete more aggressively. This triggers a ripple effect where all major streaming players must respond with their own increased investments to maintain market share. Companies that provide services to the streaming industry—like content creators, ad platforms, and technology providers—can benefit from this increased industry-wide spending.

What is ad-tech and why are companies like TTD and MGNI included?

Ad-tech (advertising technology) companies provide the platforms and tools that enable digital advertising. The Trade Desk (TTD) is a demand-side platform helping advertisers buy digital ad space efficiently, while Magnite (MGNI) is a sell-side platform helping publishers sell their ad inventory. As streaming services increasingly rely on advertising revenue (especially through ad-supported tiers), these companies benefit from the growing volume of streaming ads and the need for sophisticated targeting capabilities.

What is a content delivery network (CDN) like Akamai?

A content delivery network (CDN) is a system of distributed servers that deliver web content to users based on their geographic location. When you stream a show, the video doesn't come directly from Netflix's headquarters—it comes from a server closer to your location. Companies like Akamai (AKAM) operate these networks, ensuring videos stream smoothly without buffering. As streaming competition increases and more content is consumed, CDNs handle more data traffic, potentially increasing their revenue.

How do market caps relate to these streaming companies?

Market capitalization (or "market cap") represents the total value of a company's outstanding shares. In the streaming ecosystem, you'll find a mix of established giants with large market caps (like Netflix and Comcast) alongside smaller, more specialized companies (like Fubo and CuriosityStream). Larger companies may offer stability but slower growth, while smaller companies might provide higher growth potential with greater risk. This collection includes companies across the market cap spectrum to provide balanced exposure to the streaming industry.

13 handpicked stocks

Warner's New Chapter

Warner Bros. Discovery is splitting into two separate companies, creating a focused streaming powerhouse free from its cable business. This collection features companies positioned to ride the wave of intensified competition and growth across the streaming landscape.

Han Tan | Market Analyst

Published on July 1

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Roku, Inc.

ROKU

Current price

$104.88

As a neutral streaming platform, Roku benefits as a more competitive WBD streaming service increases its ad spend and vies for prominent placement to ...

As a neutral streaming platform, Roku benefits as a more competitive WBD streaming service increases its ad spend and vies for prominent placement to attract subscribers.

Netflix, Inc.

NFLX

Current price

$1,170.90

While a direct competitor, the WBD split validates the pure-play streaming model and intensifies the content arms race, which can lift the entire sect...

While a direct competitor, the WBD split validates the pure-play streaming model and intensifies the content arms race, which can lift the entire sector and reinforce Netflix's market-leading position.

Trade Desk, Inc. - Class A Shares

TTD

Current price

$49.32

A more competitive streaming landscape, especially with ad-supported tiers, drives up demand for programmatic advertising, directly benefiting The Tra...

A more competitive streaming landscape, especially with ad-supported tiers, drives up demand for programmatic advertising, directly benefiting The Trade Desk's demand-side platform.

Magnite Inc.

MGNI

Current price

$20.39

VIANT TECHNOLOGY INC-A

DSP

Current price

$8.37

fuboTV Inc.

FUBO

Current price

$3.90

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+27.16%

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About This Group of Stocks

Our Expert Thinking

Warner's split is creating ripple effects throughout streaming and entertainment. As the newly focused WBD streaming entity intensifies competition, all players must increase spending on content, advertising, and technology to maintain market share, benefiting the entire ecosystem.

What You Need to Know

This collection extends beyond direct streaming competitors to include crucial enablers like ad-tech platforms, content delivery networks, and independent studios. It offers broad exposure to digital entertainment as the industry evolution accelerates.

Why These Stocks

These companies were selected based on their strategic positioning to benefit from the WBD split. They represent various segments of the streaming value chain, from content creation and delivery to advertising technology and platform services.

Group Performance Snapshot

27.16%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 27.16% over the next year.

11 of 13

Stocks Rated Buy by Analysts

11 of 13 assets in this group are rated Buy by professional analysts.

0.7%

Group Growth

This group averaged a 0.7% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🎬

Streaming's Major Plot Twist

WBD's split is reshaping the streaming landscape, creating unique opportunities for companies across the entertainment ecosystem. This is like Netflix's pivot to streaming, but industry-wide.

💰

Follow The Money Flow

As competition intensifies, billions in additional spending will flow to content creators, ad platforms, and technology providers. These companies are positioned at the receiving end of that value chain.

🚀

The Forgotten Players

While everyone watches the major streamers, this collection includes under-the-radar companies that power the streaming revolution behind the scenes, from ad tech to content delivery networks.

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