Streaming Bundles Are Quietly Repricing Media Margins

Subscriber growth headlines continue to drive the narrative, but the more interesting story is happening in average revenue per user.

The margin story

Ad-supported tiers now carry meaningfully higher incremental margin than we modeled twelve months ago, as programmatic demand has caught up to inventory.

Where we're positioned

We hold a long position in the two operators best positioned to monetize ad tiers at scale, funded against a short in a sub-scale competitor facing content-cost pressure without the offsetting ad revenue base.