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Disney's (DIS) second quarter earnings saw its direct-to-consumer streaming services Disney+ and Hulu turn a profit for the first time. S&P Global Ratings US Media and Telecom Senior Director Naveen Sarma joins Market Domination to discuss the entertainment giant's path to streaming profitability. Sarma believes that Disney will be able to catch up to Netflix's 20 to 25% margins, boiling it down to a "matter of scale" in which the company already has a lead. The analyst also tells Alexandra Canal and Josh Lipton that Disney's streaming strategy works in its favor. "By itself, Disney+ is a great product. You layer in Hulu, you add the ability to go get additional customers with R-rated programming, with general entertainment, and then you layer in sports," he explains, adding that the company's bundling strategy is a "great way to attract and retain customers, and also to be able to raise price." Despite Disney's softer guidance for the company's parks and cruise segments, Sarma is not particularly worried, explaining that these are cyclical businesses that respond to overall consumer trends. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl