Media companies are facing a lot of pressure in 2023.

Cord cutting is accelerating and ad spending on linear networks is expected to decline. That's putting pressure on businesses with significant exposure to legacy television, like Walt Disney (NYSE: DIS) and Warner Bros. Discovery (NASDAQ: WBD), to show a path to profitability from their streaming businesses. Investors notably punished Disney stock when streaming losses topped $4 billion last year.

The push toward streaming profits can be seen throughout the industry, and Morgan Stanley analysts said, "If these moves do not deliver meaningful streaming profits, we see two options (not mutually exclusive): give up and/or consolidate."

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Source Fool.com