Hollywood is paying a steep price for never really figuring out the streaming model

Media companies are in the midst of figuring out how to make streaming profitable.

Netflix's direct-to-consumer streaming has upended the economics of the media industry.

The writers and actors strikes have halted Hollywood productions, putting media companies at a further disadvantage.

Netflix, with a considerable head start, is the only company to make a profit off of streaming.

Netflix has poured money into multiple seasons of political drama " The Crown ," science fiction darling " Stranger Things " and a series based on The Witcher video game franchise.

Studios have struck exclusive contracts with some of Hollywood 's biggest writer-producers in the hope that they could create new projects that could capture the attention of audiences.

Amazon shelled out $465 million on its first season of a Lord of the Rings prequel series.

Free, ad-supported streaming services like Fox Corp.'s Tubi and Paramount 's Pluto have also exploded.

Even the pay TV bundle, despite rampant cord cutting by consumers, remains a reliable source of revenue.

"We, the distributors, are funding the streaming experience. And it's frankly a better content experience on streaming," said DirecTV chief.