Disney (DIS) is set to report earnings before the bell on Thursday. LRT Capital Management founder and managing partner Lukasz Tomicki joins Morning Brief Hosts Seana Smith and Brad Smith to discuss his worries about the company and the changes required of its streaming business.

Tomicki says, "Disney is really a combination of several businesses rolled into one. And you have one really wonderful business in ESPN, and that's, unfortunately, a business that continues to be a melting ice cube." He adds, "The margins are shrinking and the number of people paying continues to go down," explaining that the landscape is more competitive as people have many options to watch sports as costs associated with running the business, namely acquiring rights to the content, continue to go up.

Disney CEO Bob Iger has said that Netflix (NFLX) is "the gold standard when it comes to streaming" and what Disney+ strives to be. Tomicki tells Yahoo Finance that he thinks Netflix-level results are "possible," but "it requires a complete rethink of how you create content and what is the definition of great content." He explains that the company needs shows like Netflix's "Too Hot to Handle," saying, "What matters is that people keep watching and are hooked to your platform and are willing to pay for it, so the thinking has to change. It is possible, but we're not seeing much of that change at Disney yet."

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This post was written by Naomi Buchanan.