Constitution Communications CEO Chris Winfrey not too long ago encountered a TV advert that conjured recollections of his firm’s carriage battle with Disney final September. This industrial message, nevertheless, got here from a special legacy media firm pushing into subscription streaming.

“Not to pick on anybody, but everybody’s been watching football,” Winfrey mentioned, “I saw Paramount+ advertising South Park — exclusive on Paramount+. I said, ‘Oh my goodness, what’s left on Comedy Central that we’re still paying for?!’ If customers paid for it already, they need access to it. They need to get it.”

Whereas he didn’t provide specifics, it appeared the CEO of the No. 2 U.S. cable operator was referring to South Park: Becoming a member of the Panderverse, which premiered final month as one among a number of “exclusive events” on Paramount+. Comedy Central continues to air the principle sequence, a lot of whose seasons are additionally obtainable for streaming subscribers.

Winfrey delivered the feedback throughout Liberty Media‘s investor day Thursday in New York. The portfolio of companies connected to Liberty’s founder, the cable billionaire John Malone, have been all represented on the annual occasion together with Wall Road analysts and different stakeholders. Constitution, of which Malone is chairman emeritus, is 26% owned by Liberty Broadband.

Having managed to achieve phrases with Disney on a novel carriage settlement, ending a 10-day blackout that overlapped with faculty soccer and the NFL, Winfrey didn’t appear hesitant to talk critically concerning the streaming enterprise. The Constitution-Disney deal not solely left sure Disney linear networks with out distribution on Constitution’s Spectrum programs, the No. 2 cable supplier within the U.S., nevertheless it bundled Disney+ and Hulu at no further cost for a lot of clients. Winfrey took a brinkman’s method to the negotiations, vowing to stroll away from the video enterprise altogether if Disney didn’t compromise, given it had taken numerous high-value reveals off linear TV and moved them into paid streaming.

“When you think about the direct-to-consumer business, it obviously worked for Netflix,” Winfrey mentioned. “They bamboozled a lot of library out and they got up and they did a great job, good for them. But if you have an existing linear business, the idea that a direct-to-consumer business is somehow going to be different and apart, it’s never going to work, it’s never going to be profitable. Even if you look at it on a stand-alone basis, personally I don’t think they’ll be profitable.”

The market and business consensus is a little more optimistic than Winfrey, although the belief is dawning that even when profitability is achieved, margins shall be nowhere close to the 30%-plus vary of conventional linear TV.

“Certainly, if you put [streaming] together with what you’re doing to your bread-and-butter, your cash flow engine with your linear business, I don’t think it ever has a chance of being profitable,” Winfrey clarified. “So, what we did in the deal with Disney and what we’re doing now with all of our deals going forward is saying, ‘Look, our customer’s already paid for that content. You siphoned off the dollars, you put your investment somewhere else. You stripped out the asset.’”

Hybrid distribution offers present a “glide path” for operators, programmers and shoppers alike because the transition from linear to streaming continues, Winfrey mentioned.

In a CNBC interview earlier than the investor day, Winfrey was requested whether or not offers just like the Disney one lengthen the lifetime of the video enterprise. “It does,” he mentioned. Given Constitution’s broadband enterprise, nevertheless, “We’re indifferent.”