• by Wayne Friedman , Staff Writer, April 14, 2023

Many owners of premium streamers  -- Walt Disney and Warner Bros Discovery, to name a few --  believe they will be profitable in 2024.
So is the business turning around for the better -- and soon?

Not when consolidation as well as a maturing marketplace and a possible recession are ahead. But one silver lining is the future -- beyond possible acquisition, mergers, or plain-jane stoppages.

In a Wednesday interview on CNBC, David Zaslav, president/chief executive officer of Warner Bros. Discovery, says one strong possibility is “consolidation through a package.” That is, a modern-day, digital and CTV-savvy cable TV-like distribution package.

“That package could come through a number of content owners over the next couple of years coming together  -- or, in some ways, [what] Amazon is doing right now. Amazon, Roku, Apple: They're having their own chase.”

Whatever is going on, others believe the business won't be thriving going forward. None other than long-time renowned investor Warren Buffett says streaming is a “fundamentally challenged business”. 

Buffett's Berkshire Hathaway business recently bought a stake in Paramount Global.

His frank observation comes after Bob Iger, chief executive officer of Walt Disney, has said “undifferentiated” entertainment is a tough business to find success in.

Zaslav disagrees with the latter: “We are more differentiated probably than anybody,” he says, citing brands including Harry Potter, DC Universe, Hanna-Barbera, Looney Tunes, and “Game of Thrones”,  as well as cable TV network brands Food Network, HGTV, Discovery, and HBO.

And contrary to Buffett's contention, Zaslav says, WBD has reduced losses to just around $200 million, while others are still hovering around $1 billion or more a year.

The packaging approach seems like an attempt to give struggling streamers a chance to redeem their overall direct-to-consumer (D2C) plans.

One issue that could surface if this evolves into something bigger is whether we can still call the streaming video business D2C. Not so direct. 

Maybe one phrase made more popular years ago -- a la carte programming -- will find a way back as well.

Everything new is old again. And again.