The first half of the streaming war saga is over The fall of Netflix marks the start of the second significant chapter

The media and entertainment industry prides itself on its mastery of classic storytelling in three Files: setting, conflict, and solution.

It's safe to say that the first act of streaming video wars is over. Except for one surprise, one newcomer, every major media and tech company looking to get into gaming streaming has been flagged. As a result, Disney+, Apple TV+, Paramount+, Peacock, and other new streaming services are worldwide.

"The first action is the land grabbing phase," said Chris Marangi, media investor and portfolio manager at Gamco Investors. "We're in the middle of it now."

Over the past month, the focus has been on the central conflict of the streaming war. After Netflix announced its first quarterly subscriber drop in more than a decade, the industry was in turmoil and warned that subscriber losses would continue shortly. This news raises concerns about the future of streaming and whether more platforms can be profitable. The rankings of the world's largest media and entertainment companies - Disney, Comcast, Netflix, and Warner Bros. Discovery - and the tens of billions of dollars spent on new, original streaming content every year.

In October, Netflix, whose hit series Stranger Things returned on Friday, had a market cap of more than $300 billion, surpassing Disney's $290 billion. But its stock is down more than 67 percent this year, bringing the company's value down to about $86 billion.

This year, Disney shares were among the Dow Jones' worst-performing stocks, down the 30%. This is despite series like The Book of Bob Fett and The Moon Knight, which helped Disney+ gain 20 million subscribers over the last two quarters. In addition, the long-awaited Obi-Wan Kenobi premieres on Friday.

HBO and HBO Max services at Warner Bros. Discovery also added 12.8 million subscribers last year, bringing 76.8 million worldwide. But shares are down more than 20 percent since the company shares began trading in April after WarnerMedia and Discovery merged.

No one knows if the latest streaming action will pave the way for profitability or which players might dominate. The formula for streaming success seemed simple not so long ago: add subscribers, watch stock prices soar. But Netflix's dramatic free fall has forced executives to reconsider their next move.