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Game of Thrones was nearly "destroyed" by pirates illegally streaming HBO content
(www.forevergeek.com)
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I think with digital content platforms in general, competition means more headaches for customers.
The store front/streaming service is not what people sign up for, but the access to a certain movie, show or game. If the catalog of all available pieces of content gets scattered across multiple services you now have to use multiple apps, pay multiple subscription fees and search through multiple catalogs.
I'd say from a customer's perspective, increased competition lead to a worse situation.
The thing here is that, for the most part, it's not actually competition, but a collection of monopolies.
You want to watch show X? You have to go to the streaming service that has the monopoly on show X. It you want to watch that show, in many cases you can't just substitute it for a different show.
If you have five stores selling all sorts of food, then that's competition. If you instead have a butcher, a baker, a candy shop, a dairy shop and a fruits/vegetable shop, that's splitting the turf. You can't just substitute the ground beef for your burgers with skittles, because the butcher is more expensive than the candy shop.
Caveat to this argument: If you really don't care about what you watch, then these different streaming services really are interchangable competitors and then the competition is good, because e.g. a shared Disney+ account is much cheaper than the now-non-shareable Netflix account.
Yeah, It´s kinda fucked up since normally, competition is good for the customer. It´s a good thing to have different stores you can go to. It´s a cood thing to have different car or moobile phone brands to chose from.
With streaming though, I can´t really think of any real world situation where the customer actually is worse off with more variety to chose from.