The battle for streaming dominance has become a new frontier in the entertainment space. As traditional media models give way to on-demand viewing, companies are vying for leads in the digital and online models. Among the contenders are three giant streaming stocks, each holding a unique edge and strategies to capture users’ attention globally.

On the list of the top streaming stocks, the first one, with its storied legacy and transformative vision, is leveraging its iconic brands. Interestingly, the company is expanding its streaming services to captivate audiences beyond the confines of the silver screen.

Once a cornerstone of cinematic entertainment, the second one is staging a formidable comeback with its platforms. The company is seeing solid growth in streaming hours and subscriber numbers. Meanwhile, the third one, the pioneer of streaming devices, is reshaping the streaming space by cultivating user engagement. In short, the company is capitalizing on its vast platform reach.

Read more to delve into these streaming stocks’ core strategies and fundamental advancements.

Disney (DIS)

Disney’s (NYSE:DIS) solid performance, transformation strategy, and stream service expansion are core fundamentals supporting its valuation expansion. Disney delivered a performance with considerable year-over-year (YoY) increases in segment operating income and adjusted EPS compared. Notably, there was a 27% increase in segment operating income and a 23% rise in adjusted EPS. These trends indicate positive momentum for the company and reflect the edginess of its transformation strategy.

The rise in segment operating income signifies the company’s operational edge and revenue generation across its business segments. This increase suggests Disney’s fundamental capability to optimize its operations and capitalize on revenue-driving opportunities. Similarly, the increase in adjusted EPS highlights Disney’s profitability and financial strength. Hence, higher EPS indicates improved earnings efficiency and value creation, positively reflecting the company’s growth prospects.

Additionally, Disney has a strategic focus on expanding its streaming services. This can be observed in its partnerships and moves targeted at enriching its digital lead. The company collaborates with Fox (NASDAQ:FOX) and Warner Bros Discovery (NASDAQ:WBD) to fabricate a new streaming sports service.

Simultaneously, there are plans to launch ESPN as a standalone streaming option in the fall of 2025. At its core, Disney’s collaboration with media entities (Fox and Warner Bros Discovery) signifies its strategic approach to leverage partnerships for market expansion. Through pooling resources and content libraries, Disney targets enriching its streaming offerings and attracting a massive user base.

Finally, the partnership with Epic Games helps Disney expand its lead in the gaming market. The penetration into the growing popularity of gaming (like Fortnite) among millennials, Gen Z, and Gen Alpha may benefit Disney’s consolidated performance. Overall, these developments establish Disney’s ability to capitalize on the synergies between its legacy brands and franchises and the interactive gaming offered by partners like Epic Games.

Paramount (PARA)

Paramount’s (NASDAQ:PARA) streaming platforms (including Paramount+ and Pluto TV) have delivered considerable growth, driving rapid revenue expansion. For instance, in 2023, Paramount had a solid boost in streaming hours compared to 2022. Notably, the user base spent nearly 40% more on Paramount’s streaming platforms. This is indicating a strong demand for the company’s content offerings. These increased streaming hours suggest a growing user base and higher engagement levels.

Furthermore, Paramount’s subscriber base and monthly active users (MAUs) have shown rapid growth, reflecting the increasing pace of adoption. There is a considerable rise in subscribers and MAUs, highlighting Paramount’s lead in attracting and retaining users. In detail, Paramount+ added 4.1 million subscribers in Q4 2023, hitting a cumulative total of 67.5 million. 

The consistent subscriber growth is based on Paramount’s content offerings and marketing efforts. Financially, the growth in subscribers and MAUs may continue to be a main driver of revenue expansion. Hence, these factors directly impact subscription and advertising revenue.

Moreover, Paramount+ demonstrated operating leverage, with three consecutive quarters of YoY improvement in D2C OIBDA. The data indicates a positive relationship between subscriber growth and operating leverage, suggesting that Paramount’s streaming business is becoming more efficient as it scales. Operating leverage enriches profitability and valuation by allowing Paramount to derive incremental profit from each additional subscriber.

Finally, Paramount attained a 37% growth in direct-to-consumer (D2C) revenue in 2023, based on a mid-year price increase for Paramount+ in the domestic market. This considerable top-line growth suggests the monetization potential of Paramount’s streaming platforms. Overall, the correlation between the price increase and top-line growth suggests the vitality of pricing strategies in driving D2C revenue expansion.

Roku (ROKU)

Fundamentally, Roku’s (NASDAQ:ROKU) platform growth and device revenue give it an edge in the competition. By leveraging its position as the programmer of the home screen for 80 million active accounts globally, Roku aims to drive engagement, monetization, and user satisfaction.

Operationally, Roku’s active account growth signifies its expanding user base. In Q4 2023, Roku added 4.2 million active accounts, lifting the total to 80 million. This growth suggests Roku’s fundamental capability to attract new users and retain existing ones. Roku gains more space to monetize its platform through advertising, subscription services, and partnerships as the user base expands.

Additionally, the increase in streaming hours will hit a record 106 billion hours in 2023, highlighting Roku’s solid engagement levels. Users spend considerable time content on the Roku platform, indicating high satisfaction with its offerings and user experience. Similarly, this engagement is vital for Roku’s revenue generation, as higher viewer engagement correlates with increased advertising revenue and subscription sign-ups.

In Q4 2023, Roku’s platform revenue hit $829 million, marking a 13% YoY increase. This growth is based on streaming service distribution and video advertising activities. The growth is offsetting media and entertainment (M&E) adversities. In short, Roku benefits from boosted subscription sign-ups and recent price increases from subscription video-on-demand (SVOD) partners.

Lastly, Roku’s device revenue also increased by 15% YoY in Q4, propelled by sales of Roku-branded TVs. The launch of Roku-branded TVs in March 2023 expanded Roku’s hardware offerings, which led to top-line expansion. Therefore, as Roku continues to advance its hardware products and expand distribution channels, device revenue may remain a considerable fraction of the consolidated top-line. If you are looking for the next Netflix, grab one or all of these streaming stocks.

As of this writing, Yiannis Zourmpanos held long positions in DIS and PARA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.