The streaming wars are over, and it's time for media to figure out what's next

I'm calling it. The Streaming Wars are over. 2019-2023. RIP.

The contention betwixt the biggest media and amusement companies to adhd streaming subscribers, knowing consumers volition lone wage for a constricted fig of them, is finished. Sure, the participants are inactive running. They're conscionable not trying to triumph anymore.

Disney announced its flagship streaming service, Disney+, mislaid 4 cardinal subscribers during the archetypal 3 months of the year, dropping the company's full streaming subscribers to 157.8 cardinal from 161.8 million. Disney mislaid 4.6 cardinal customers for its streaming work successful India, Disney+ Hotstar. In the U.S. and Canada, Disney+ mislaid 600,000 subscribers.

It's go wide the biggest media and amusement companies are operating successful a satellite wherever important streaming subscriber maturation simply isn't determination anymore – and they're contented not to pursuit it hard. Netflix added 1.75 cardinal subscribers successful its archetypal quarter, pushing its planetary full to 232.5 million. Warner Bros. Discovery added 1.6 cardinal to land astatine 97.6 million.

The existent large media communicative is each astir getting streaming to profitability. Warner Bros. Discovery announced past week its U.S. direct-to-consumer concern turned a nett of $50 cardinal successful the 4th and volition stay profitable this year. Netflix's streaming concern turned profitable during the pandemic. Disney connected Wednesday announced streaming losses narrowed to $659 cardinal from $887 million.

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Netflix has curbed its contented spending growth, and Warner Bros. Discovery and Disney person some announced thousands of occupation eliminations and billions of dollars successful contented spending cuts successful caller months. Disney volition "produce little volumes of content" moving forward, Chief Financial Officer Christine McCarthy said during Wednesday's net league call, though Chief Executive Bob Iger noted helium didn't deliberation it would person an interaction connected planetary subscriber growth.

There's inactive immoderate maturation among the smaller players. NBCUniversal's Peacock gained 2 cardinal subscribers past quarter, giving it 22 cardinal subscribers. Paramount Global added 4.1 cardinal subscribers successful the quarter, putting it astatine 60 cardinal subscribers.

But the cardinal question isn't looking astatine the maturation numbers arsenic overmuch arsenic it's astir the capitalist absorption to the maturation numbers. Paramount Global fell 28% successful a time past week aft the institution announced it was cutting its dividend from 25 cents a stock to 5 cents a stock to prevention cash.

Disney+ Hotstar subscribers brought successful a paltry 59 cents per period of gross past quarter, down from 74 cents past quarter. It appears Disney is OK with losing these low-paying customers. Disney gave up its Indian Premier League cricket streaming rights past year. Those rights were acquired for $2.6 cardinal by Viacom18, of which Paramount Global owns a number stake.

Disney besides announced it's raising the price of its ad-free Disney+ work aboriginal this year. Disney's mean gross per idiosyncratic for U.S. and Canadian subscribers roseate 20% successful the astir caller 4th aft yet different terms summation was announced past year. Big terms hikes typically aren't the strategy executives usage if the precedence is adding subscribers.

Raising prices and cutting costs isn't a large maturation strategy. Streaming was a maturation strategy. Maybe it volition travel backmost a spot with cheaper advertizing tiers and Netflix's impending password sharing crackdown.

But it's highly improbable maturation volition ever instrumentality to the levels seen during the pandemic and the aboriginal years of wide streaming.

That astir apt means the media and amusement manufacture volition request a caller maturation communicative soon.

The astir evident campaigner is gaming. Netflix has started a fledgling video crippled service. Comcast considered buying EA past year, arsenic archetypal reported by Puck. Microsoft's deal for Activision is present successful jeopardy aft UK regulators blocked the transaction. If that acquisition fails, Activision could instantly beryllium a people for bequest media companies arsenic they look for a much breathtaking communicative to archer investors.

While Disney unopen down its metaverse division arsenic portion of its caller outgo cuts, marrying its intelligence spot with gaming seems similar an evident match. One tin easy envision the maturation imaginable of Disney buying thing similar Epic Games, which owns Fortnite, and gathering its mentation of an interactive beingness done gaming.

More consolidation volition hap – yet – among bequest media companies. But 1 large gaming acquisition could commencement a tally successful the industry.

Perhaps The Gaming Wars is the adjacent chapter.

Disclosure: NBCUniversal is the genitor institution of Peacock and CNBC.