Streaming video services are taking over the entertainment industry. It's an everlasting sea change with far-reaching consequences across the media sector. In the vanguard of this digital revolution, the short-short list of leaders includes streaming platforms expert Roku (ROKU 1.58%) and legendary content producer Warner Bros. Discovery (WBD -1.07%).

These two media-streaming magnates are making moves together these days -- but with very different long-term intentions.

What's going on?

On the last day of January, Roku announced that it would publish a large bundle of Warner Discovery's Free, ad-supported streaming television (FAST) channels in the spring. Warner Discovery had been talking for a while about moving some of its aging hit catalog out of the HBO Max and Discovery+ streaming services, making them available through other platforms instead. Sure enough, several formerly popular titles such as Westworld, The Nevers, and Raised by Wolves dropped off of the HBO Max services last December with a firm promise of finding new distribution channels for these names.

Roku was one of the content producer's top destination choices, of course. As the leading provider of user-friendly streaming software and services in North America, with an eye toward global expansion in the near future, Roku's name had to dominate the early discussions. And from Roku's point of view, this was a prime opportunity to add specific support to the Roku TV channel in the hope of growing its subscriber base more quickly.

The Roku deal was never exclusive, of course. The former HBO Max and Discovery+ content headed to the Roku Channel was also eligible for negotiations with other digital presentation platforms. Indeed, Warner Discovery also struck a similar agreement on the same day with Tubi, a FAST platform managed by Fox (FOX -0.20%) (FOXA -0.10%) with 64 million active users.

Well, spring has sprung, and the Warner Discovery content is now available for streaming on Roku TV and Tubi. The two platforms offer the same selection of 14 Warner Bros-branded live TV streams, packaged in each service provider's own user interface and content catalog. Both Roku and Tubi also said they would have about 2,000 hours of on-demand programming from Warner Discovery alongside the TV-style live streams that launched on Thursday.

Streaming video services take center stage

The Roku and Tubi deals represent a major expansion in the streaming TV space for Warner Discovery, a company that has a long and storied history of producing feature films and television programming. After the merger that created this company a year ago, the company is taking a more aggressive approach to digital distribution.

This is neither the Warner Bros. nor the Discovery Channel you grew up with, but a refocused business in an increasingly digital era. The ongoing move into the FAST space, offering up an avalanche of archived content through alternative distribution networks, is just the tip of the iceberg.

For investors, the more intriguing story may be Roku's ability to lead the conversation in the content distribution game. With its stock down 50% in the past 52 weeks and 86% from the all-time highs of 2021, many market makers seem to have written off the company's ability to succeed in the long run.

But it's clear that Roku takes an active part in rewriting the rulebook in a rapidly changing media landscape. This latest move won't exactly set it apart from the competition in a crowded marketplace, but it does keep Roku's name at the forefront of what's new and happening in the digital video sector. If people want to experience a rich content collection through the live media format that defines the cable and broadcast platforms, Roku will happily provide that option with a hearty serving of advertising.

Buy Roku, watch Warner Discovery, leave Fox alone

So, what should investors make of Warner Discovery's FAST content deals?

First, I don't think it moves the needle by much for Tubi's owner, Fox. That old-school media veteran is too entrenched in the low-growth business practices of years past to make it onto my list of recommendations. I'll keep an eye on the Tubi project, but I don't expect any financial fireworks there.

As for Warner Discovery, I like what this even larger industry titan is doing and wouldn't mind adding a few shares of that stock to my portfolio someday soon. I'll give this stock another look when we know more about the future of the repackaged, renamed, and redesigned HBO Max and Discovery+ services.

And Roku keeps hitting all the right notes, habitually proving the bears wrong. This Warner Discovery deal is not the juiciest growth driver I've seen from Roku recently, but it is another point of proof that the company knows what it's doing. In my mind, Roku is the biggest no-brainer buy on today's stock market.

You can quote me on that.