Some warn that mergers and acquisitions in the streaming industry could translate into higher costs for consumers. [Photo: Shutterstock]

[DigitalToday reporter Choi Jae-won (최재원)] As major mergers and acquisitions continue in the streaming industry, content and distribution networks are becoming concentrated in a small number of companies, raising concerns that consumers could face higher costs and reduced choice.

On Sept. 30 (local time), IT outlet Ars Technica analysed how the growing scale of media companies can affect consumer behaviour, citing a boycott movement against Disney over the suspension of ABC's "Jimmy Kimmel Live!" last year. It said Disney's business footprint is so broad that avoiding the company would require taking into account not only Disney+ but also Hulu, ABC, FX, ESPN and numerous film and character franchises.

It also cited sports streaming service Fubo. Fubo filed a lawsuit in 2024, arguing that a joint sports service by Disney, Fox and Warner Bros Discovery was limiting competition. But the lawsuit ended the following year after Disney agreed to a deal combining Hulu+ Live TV and Fubo and securing about a 70 percent stake in the new company. The two sides said the combination would expand consumer choice.

There are also concerns about price burdens. Fubo resolved a contract dispute with NBCUniversal this year and restored some channels, then raised its monthly fee by $15, or about 20,000 won, the outlet said. Fubo said it had no choice but to pass on part of rising content supply costs to some subscribers.

Industry consolidation is growing further. Paramount Skydance is set to complete its acquisition of WBD on the 6th, and once the deal closes, Paramount+, HBO Max, Discovery+ and CNN, among others, will fall under one company. Fox has also agreed to acquire Roku for about $22 billion, or about 29.9 trillion won, a deal that would bring ad-supported free streaming service Tubi and The Roku Channel under the same owner.

Bigger companies can increase the convenience of using multiple services in one place. But if there are fewer competitors, it could become harder to choose other services in response to price hikes or content reductions. The outlet said, "Consolidation among streaming companies to secure profitability could ultimately come back to consumers as higher prices and narrower choices."

Keyword

#Ars Technica #Disney #Fubo #Warner Bros Discovery #Roku
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