Rohan Reddy, director of research at Global X ETFs, spoke with Quartz for the latest installment of our “Smart Investing” video series.

Watch the interview above and check out the transcript below. The transcript of this conversation has been lightly edited for length and clarity.

ANDY MILLS (AM): So Disney stock is down despite an earnings beat. What’s going on?

ROHAN REDDY (RR): Well, this has been a very tough space to be in in general. Subscribers are pretty tough to come by these days, and we’ve seen that with a number of different media stocks. Obviously, Paramount, for example, has been in the news and it does reflect a little bit about the consumer and their preferences, but also how tough of an industry that streaming actually is, which Disney has looked to get into. But it’s obviously been a bit of a challenge for a long period of time.

AM: Yeah, there was actually some optimistic news in their earnings that Hulu and Disney+ together actually turned a profit for the first time. Is this going to continue in the future you think?

RR: Well, I think Netflix is a very good example of how you can really do well in an industry like this. If you have patience, time and resources, which Disney is one of the few stocks that seemingly does. So if they’re able to scale this business going forward and have a lot more subscribers and also be able to get costs down, ultimately that’s a path to profitability. So it’s likely gonna be a case where there is gonna be a few very large streaming companies in the future, but those that do survive will be the ones that ultimately do well.

AM: Yeah, Disney is an interesting case because they actually have a few streaming services. ESPN+ was one of them that that lost money continued to lose money this quarter. They said that they’re gonna add an ESPN+ button to Disney+. Is that the answer or is it like the crackdown on password sharing? What’s gonna turn profit for that streaming service?

RR: Well, as a subscriber, I like the model that they have currently, which is not just necessarily one streaming platform, but combining bundles to offer consumers different options. So if one, for example, is not necessarily doing well, for example, ESPN, in this case, what they can do is try to get cost down in that area, lower content, or try and get tougher with negotiations, for example, at some of their other companies that they use. So I do think one alternative that they might have is maybe to try to focus a little bit more into the areas that are doing not as well, but they could also maybe start to leverage some of the areas that are doing a little bit better.

Read more: Disney+ actually turned a profit — but Disney stock still dropped 

AM: Would you be a buyer of Disney stock right now?

RR: No. I think this is a pretty challenging space to be in. The legacy media sector is one that a lot of institutional investors have largely stayed away from. It’s really the companies that have a newer business model. Cracking that code is the challenge. But we do think the companies, for example, like Netflix that figure it out will be the ones that will be the winners in the future. However, picking the winners in this space is really tough, and it’s part of the reason why we’ve seen a lot of underweight from institutional investors.

AM: But Netflix, you’re a little bit positive on.

RR: Yeah, Netflix has a really good outlook for the long term, I would say, just because they’ve figured out how to get optimal amounts of content and also geographically distribute profitability too, just because of the content coming from various geographies globally. So for example, they’ve captured like Korean media, for example, in areas previously that were a little bit more untapped. So I do think a company like Netflix with a lot of subscribers already, obviously they’ll need to continue to build on subscribers, but it is a model currently that’s a lot more built out and one that has a much higher likelihood of succeeding going forward too.

AM: Thank you for coming today, Rohan.

RR: Of course. Anytime.