It's not so black and white. Stratchery posits consolidation may promote competition at the distribution layer, where Netflix presently stands to dominate:
"To that end, might it be better for consumers, not-so-much today but ten years from now, if Disney were fully empowered to compete with Netflix? What is preferable? A dominant streaming company and a collection of content companies trying to escape the commoditization trap, or two dominant streaming companies that can at least try to hold each other accountable?" [1]
An analog might be found in the T-Mobile/Sprint merger [2]. It is not obvious whether their consolidation would have reduced competition, by turning two options into one, or increased it, by creating a stronger number three to AT&T and Verizon.
"To that end, might it be better for consumers, not-so-much today but ten years from now, if Disney were fully empowered to compete with Netflix? What is preferable? A dominant streaming company and a collection of content companies trying to escape the commoditization trap, or two dominant streaming companies that can at least try to hold each other accountable?" [1]
An analog might be found in the T-Mobile/Sprint merger [2]. It is not obvious whether their consolidation would have reduced competition, by turning two options into one, or increased it, by creating a stronger number three to AT&T and Verizon.
[1] https://stratechery.com/2017/disney-and-fox/
[2] http://money.cnn.com/2017/11/04/news/companies/sprint-t-mobi...