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.

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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

Updated 2 days ago | Published at juillet 1