Streaming and Media Economics: Subscription Gains, Ad Pressure
Companies described streaming subscription gains supported by pricing and subscriber growth, alongside increased competition for advertising revenue.
The entertainment company Walt Disney Co. (DIS) said in May that it generated more Entertainment subscription and affiliate fees and advertising revenue from subscription video on demand than from linear TV. The company described a “monetization transition” in which expanding streaming revenues more than offset declining linear revenues.
Disney’s August results showed continued subscription growth and a decline in advertising. Entertainment subscription and affiliate fees rose 12% in the quarter ended June 27, with the company citing the Fubo transaction, higher effective rates and more subscribers among the contributors. Entertainment advertising revenue fell 1%; in May, Disney had reported advertising growth of nearly 5% for the prior-year quarterly comparison.
The television and streaming company AMC Global Media Inc. (AMCX) attributed its streaming revenue growth primarily to price increases across its services. Streaming revenues rose 8.4% in the six-month comparison, partially offsetting a 16.3% decline in affiliate revenues attributed primarily to basic subscriber declines. Domestic subscription revenue fell 4.5% in the second quarter, and the company expects linear subscriber declines to continue.
The media company Warner Bros. Discovery, Inc. (WBD) also described streaming growth alongside declines elsewhere in its business. In August, the company said Streaming segment growth was more than offset by declines in Studios and Global Linear Networks, leaving total adjusted EBITDA down 6% excluding foreign-exchange effects from the prior-year quarter.
Warner Bros. Discovery and the streaming platform company Roku, Inc. (ROKU) both warned of increased competition for streaming advertising revenue. Warner Bros. Discovery attributed that pressure to expanding digital advertising inventory. Roku said major subscription services’ ad-supported tiers had “further increased competition” for streaming TV advertising revenue, including through advertising sold in content distributed on Roku’s platform.
The television company Fox Corp. (FOXA) also described pressure from changing viewing habits. Fox said the shift toward direct-to-consumer streaming and additional entertainment choices had intensified audience fragmentation and reduced traditional linear viewership. The shopping company QVC Group, Inc. (QVCG) said increased entertainment choices adversely affect viewership of its programming. QVC also said it had spent, and expects to continue spending, increasing amounts on customer initiatives, particularly online digital marketing and personalized shopping experiences.
The streaming service provider FuboTV Inc. (FUBO) retained the same subscriber-acquisition and retention warning in May and August. The company says perceived declines in service value through pricing, features or content changes could hurt customer acquisition and retention, and aggressive competitor promotions could weaken its value proposition. Its warning remained unchanged across the two disclosures.
The media company Paramount Skydance Corp. (PSKY) continued in August to expect accelerating direct-to-consumer subscription and advertising revenue growth, together with higher direct-to-consumer profit in 2026. Its outlook called for total paid subscribers modestly above 2025 and included approximately 4 million strategic international hard bundle exits. The company said its 2026 investment in business transformation, content and technology is expected to contribute to growth in 2027 and beyond.