Streamers are making money, but a lot of them face this problem

Streaming giants Disney (DIS) and Paramount (PARA, PARAA) both reported earnings this week. Disney reported an earnings beat on both the top and bottom lines for its fiscal third quarter, revealing its streaming segment was profitable for the first time. Paramount Global (PARA, PARAA) reported mixed results for its second quarter, with adjusted earnings beating estimates, but revenue falling short of expectations. Morningstar Senior Equity Analyst Matthew Dolgin joins Yahoo Finance to discuss the streaming landscape. "All these companies other than Netflix (NFLX) are continuing to make progress, but they are just not there, not mature," Dolgin notes, "the difference with them and Netflix, a decade or less ago, is that they have these other legacy businesses that they're managing. And so they're not getting the pass from Wall Street as streaming continues to grow and is not yet a mature or good business necessarily. They're seeing their other business decline, so they need that to turn." "With that said, we're pretty optimistic generally about how things are going in the streaming space," Dolgin adds, "they're making it a better business, but it takes time and in the meantime, their other businesses continue to struggle and that's why the stocks, we think, are remaining under significant pressure." Watch the video above to hear why Dolgin doesn't think YouTube posts a "really big" threat to streamers yet.  For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Mariela Rosales. Read More...