On July 28th, Roku (NASDAQ:ROKU) shares rose soared roughly 25% upon the release of second quarter earnings that topped Wall Street estimates. On Monday after the bell, Paramount Global (NASDAQ:PARA) also topped second quarter revenue and earnings estimates despite a challenging TV advertising market and streaming losses, with shares rising 7% in after-hours trading. Therefore, The Walt Disney Company (NYSE:DIS) is in for a lot of pressure as today’s report will make it either the streaming king or yet another struggling streaming player. 

Paramount narrowed down its direct-to-consumer loss of $424 million with linear ad revenue contracting 10% YoY. Overall, it made $7.62 billion in revenue, topping analyst estimates of $7.43 billion but still below last year’s comparable quarter when it made $7.8 billion in sales. It made an operating loss of $250 million which is a far cry from 2022’s comparable quarter when it made an operating profit of $819 million. Adjusted EPS amounted to $0.10 a share. Management is still expecting to see improving conditions during the remaining half of the year. 

Paramount CEO Bob Bakish expressed his sadness due to the ongoing double strike that began due to failed negotiations with the Alliance of Motion Picture and Television Producers (AMPTP), which acts on behalf of studios that include Apple Inc (NASDAQ:AAPL), Disney, Netflix (NASDAQ:NFLX), Amazon.com Inc (NASDAQ:AMZN) and others. Bakish acknowledged that the partnership with the creative community is critical for the health of the industry. But for now, uncertainties remain with filming and release schedules being postponed as a consequence.

Disney is gearing up to report its fiscal third quarter earnings after the bell amid a challenging year. The entertainment giant has been facing a slowdown in streaming but until now, Disney CEO Bob Iger has maintained that the unit will reach profitability in 2024. Advertising remains a headwind, and the ongoing strike a massive headache for the media giant. Today’s report along with Iger’s vision for going forward will ultimately tell if struggling Disney has a shot of getting to the ball or its carriage has turned to a pumpkin.