Competition Among
Video Streaming Services
September 25, 2020
Congressional Research Service
https://crsreports.congress.gov
R46545

Congressional Research Service

SUMMARY

Competition Among Video Streaming Services
Video streaming services allow users to watch movies and television shows over the internet.
Some offer video-on-demand, which can be watched at any time, as well as live TV programs
being broadcast at that moment. Streaming services can be accessed on websites and apps on
computers and mobile devices. They can also be viewed on televisions using digital media
players, which include internet-connected televisions with built-in apps (Smart TVs), gaming
consoles, and streaming devices that plug into the television.
Companies that offer video streaming services can attract new users by offering popular movies
and TV shows. Although some of these companies compete with one another and with other video providers using prices,
differences in prices across streaming services can be fairly small, particularly among those that offer only video-on-demand.
Thus, some streaming services also compete with video content, as particular movies and television shows may be available
exclusively on one streaming service. Some companies that own studios or television networks have started offering their
own streaming services as well. These companies hold the rights to certain movies and television shows, meaning they are
able to make this content exclusively available on their own streaming service or license it to other services for a fee. The
challenge of obtaining content may raise costs for competing streaming services and create a barrier for potential entrants into
the video streaming services market.
Some companies that own video streaming services have integrated vertically. Some sell digital media players used to access
streaming services on televisions. Others provide internet and mobile services or information technology services that can be
used to store and distribute video content, such as cloud computing and content delivery networks. These vertically integrated
companies may have advantages over competing streaming services, as their own services do not need to pay to be included
on their digital media player or to use their information technology services. A streaming service that shares common
ownership with a content delivery network or internet service provider may be able to improve the experience of its users by
prioritizing its own video content when internet traffic is congested in order to minimize latency. Companies that own digital
media players may be able to limit consumers’ access to competing streaming services by refusing to include them on their
players.
Some of the video streaming services that have launched recently have had disputes with owners of digital media players.
The disputes reflect broader negotiations taking place among media companies, which can involve video content owned by
the companies, digital advertis ing revenue, and the ability to acquire user viewership data. Some recent disputes involve the
streaming services Walt Disney Co.’s Disney+, AT&T Inc.’s HBO Max, and Comcast Corp.’s Peacock, as well as the digital
media players owned by Amazon.com Inc. and Roku Inc. The disputes could adversely affect consumers, who may face
increased limitations on the video content they are able to access on each streaming service, particularly through their digital
media players. This means consumers may need to subscribe to multiple streaming services and purchase multiple devices to
view content they wish to see.
The Federal Communications Commission (FCC) does not regulate video streaming service providers, which are also known
as online video distributors (OVDs). The FCC has the authority to regulate broadcast stations and cable and satellite
television services, and has recognized OVDs as potential competitors to these services. For example, in 2019, the FCC
determined that the streaming service AT&T TV Now served as a competitor to Charter Communications, a cable television
provider, in certain franchise areas in Hawaii and Massachusetts, meaning Charter is no longer subject to rate regulation. In
addition, the U.S. Department of Justice’s Antitrust Division has considered how proposed mergers involving media
companies might affect OVDs. Recent examples include Charter Communication Inc.’s acquisition of Time Warner Cable
Inc. and Bright House Networks LLC and AT&T Inc.’s acquisition of Time Warner Inc.
Current laws governing television generally do not address video streaming services. Some aspects of competition among
OVDs involve entities for which Congress has established a regulatory framework, and some do not. As committees in both
houses of Congress continue to investigate competition in digital markets , it may be important to consider the various ways
online video distributors compete, and how that competition may affect consumers.
R46545
September 25, 2020
Clare Y. Cho
Analyst in Industrial
Organization and Business


Competition Among Video Streaming Services

Congressional Research Service

Contents
Introduction ................................................................................................................... 1
Overview of Video Streaming Services............................................................................... 1
Competition with Prices and Content ................................................................................. 3
Vertical Integration with Video Streaming Services .............................................................. 6
Cloud Computing and Content Delivery Networks ......................................................... 6
Internet Service Providers and Mobile Service Providers ................................................. 7
Digital Media Players................................................................................................. 7
Recent Disputes Involving Video Streaming........................................................................ 9
Disney+ ................................................................................................................. 10
HBO Max .............................................................................................................. 10
Peacock ................................................................................................................. 12
Oversight of Video Streaming Services............................................................................. 12
Considerations for Congress ........................................................................................... 14

Figures
Figure 1. Number of Households in the United States with Digital Media Players ..................... 8
Figure 2. Streaming Devices Owned by Households in the United States ................................. 8

Tables
Table 1. Examples of Video Streaming Services................................................................... 2
Table 2. Prices for Select Streaming Services ...................................................................... 4

Contacts
Author Information ....................................................................................................... 15

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Introduction
Recently, consumers have used broadband primarily to stream video content.1 Through streaming
services, users can watch movies, television shows, and other forms of video content over the
internet.
Over the last few years, as streaming gained popularity, the number of video streaming services
has increased. Some of these services are offered by companies that also provide cable or satellite
television services, known as multichannel video programming distributors (MVPDs).2 Some
companies that own streaming services also own television networks and film studios, while
others license all of their video content. In addition, some owners of streaming services operate
infrastructure and hardware that video streaming services use to store and distribute video
content, such as cloud computing services and digital media players, while others do not.
Committees in both houses of Congress have been investigating competition in digital markets
since 2019. One issue raised in these investigations is the difficulty of competing against
companies that also distribute their products. Streaming services face similar issues, where
companies that are integrated vertically may be able to restrict a competing streaming service’s
access to content or limit access to the streaming service itself. In addition, although Congress has
passed legislation governing broadcast stations and MVPDs, these laws do not explicitly discuss
video streaming services.
This report discusses competition among video streaming services. It examines the various ways
media companies compete, such as with video content, and the potential impact on consumers, as
well as possible issues for Congress to consider.
Overview of Video Streaming Services
Video streaming services allow users to watch movies, television shows, and other media content
over the internet. The providers of these services are known as online video distributors (OVDs).3
Video streaming services can be accessed on websites or apps on computers and mobile devices.
They can also be viewed on televisions using digital media players, which include televisions
with built-in apps and internet connectivity (Smart TVs),4 gaming consoles, and streaming
devices that plug into televisions.
Video streaming services can offer video-on-demand, which allows users to watch movies and
shows at a time of their choosing. Some offer live TV, streaming programs that are being
broadcast at that moment; they are also known as virtual MVPDs. Some streaming services that
provide live TV offer a digital video recorder on which users may record a live program for later
viewing. Oftentimes, streaming services are advertised as alternatives to MVPDs, which also may

1 According to Sandvine, a manufacturer of internet networking equipment, video streaming ser vices around the world
made up 55.44% of broadband use in 2019 and 57.64% from February 1 to April 19, 2020. In the Americas, during this
time period in 2020, Netflix and YouTube had the highest shares of internet traffic at 19.11% and 14.43%, respectively
(Sandvine, “The Global Internet Phenomena Report COVID-19 Spotlight,” May 2020).
2 Telephone companies that offer video services may also be MVPDs. Details on MVPDs are beyond the scope of this
report. For more information regarding recent legislation involving MVPDs, see CRS Report R46023, Copyright Act
and Communications Act Changes in 2019 Related to Television , by Dana A. Scherer.
3 Streaming services are also referred to as “over-the-top” services. T hat term initially came from references to devices
that go “over” a cable box, also known as a set -top box.
4 Josh Levenson and Ryan Waniata, “What Is a Smart TV?,” Digital Trends, March 31, 2020, at
https://www.digitaltrends.com/home-theater/what-is-a-smart-tv/.
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offer digital video recorders and video-on-demand. In addition, some companies that own
MVPDs own video streaming services as well. Examples of video streaming services, including
those discussed in this report, are provided in Table 1.
Table 1. Examples of Video Streaming Services
Parent Company
Video Streaming Service
Video on
Demand
Live TV
Alphabet Inc.
YouTube
x

Alphabet Inc.
YouTube TV

x
Amazon.com Inc.
Prime Video
x

Apple Inc.
Apple TV+
x

AT&T Inc.
AT&T TV Now (formerly DIRECTV Now)
x
x
AT&T Inc.
HBO (formerly HBO Now)
x

AT&T Inc.
HBO Max
x

Comcast Corp.
Peacock
x
x
Dish Network Corp.
Sling TV
x
x
Facebank Group Inc.
Fubo TV
x
x
Netflix Inc.
Netflix
x

ViacomCBS Inc.
CBS All Access
x
x
Walt Disney Co.
Disney+
x

Walt Disney Co.
ESPN+
x
x
Walt Disney Co.
Hulu
x

Walt Disney Co.
Hulu Live TV

x
Source: Various news sources, including John Fletcher, “Kagan Survey How Coronavirus Has Already Changed
Media Consumers,” S&P Global Market Intelligence, April 1, 2020, at https://www.spglobal.com/
marketintelligence/en/news-insights/blog/kagan-survey-how-coronavirus-has-already-changed-media-consumers.
Notes: This is not a comprehensive list. Several television networks (e.g., AMC), sporting leagues (e.g., MLB),
and others not included in this list offer streaming services.
OVDs can generally be classified under at least one of three business models:5
 Ad-supported streaming services offer content for free, with advertisements
placed at the beginning of or intermittently throughout a video.
 Subscription-based streaming services offer content for a fixed monthly fee.
 Transaction-based streaming services charge a one-time fee to purchase or rent
video content, such as a movie or an episode of a TV show.6

5 Federal Communications Commission (FCC), In the Matter of Annual Assessment of the Status of Competition in the
Market for the Delivery of Video Programming , paragraph 131. MB Docket No. 16-247, released January 17, 2017, at
https://www.fcc.gov/document/18th-annual-video-competition-report. The FCC separates the business models for
OVDs into four categories: subscription, advertising-supported, electronic sell through (one-time purchases), and
rentals. For the purpose of this report, the last two categories have been combined as “ transaction -based” models
because of the similarities in the business models and because most streaming services provide both electronic sell
through and rentals together.
6 Some transaction-based systems provide discounts for purchasing or renting a full season of a TV show or multiple
movies.
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Some OVDs combine these business models. For example, Prime Video offers some content
through its subscription-based service and other content through transaction-based options;
YouTube offers some ad-supported and transaction-based content, and its affiliated YouTube TV
is subscription-based; and Peacock offers a free ad-supported version and subscription-based
options, with and without advertisements.
Competition with Prices and Content
Video streaming services that use a subscription- or transaction-based system can compete by
offering content at lower prices than their competitors. Streaming services that offer live TV can
be cheaper than packages offered by MVPDs, depending on the channels the customer subscribes
to. Some MVPDs have responded by offering cheaper plans with fewer channels and by
improving their set-top boxes to offer some streaming services, such as Netflix.7 Some streaming
services that offer live TV advertise their services by promising no hidden fees, such as
equipment rentals and cancellation fees, and no annual contracts.8
Most streaming services that offer live TV do not require an annual subscription; subscribers can
sign up on a month-to-month basis instead. While the lack of a long-term commitment can be
appealing to some consumers, it also means that prices can suddenly increase.9 For example, on
June 30, 2020, YouTube TV added eight new channels and increased its price from $50 to $65 per
month, effective immediately for new subscribers; for its current subscribers, the changes went
into effect on July 30, 2020.10
On average, the price for streaming services that offer live TV is higher than those that offer only
video-on-demand (Table 2). This may be partially due to cost differences—it tends to be costly to
license the rights to air a television network.11 To attract more users, a streaming service that
offers live TV may try to expand the number of networks offered on its service, but this in turn
increases the cost of running the service. In contrast, a streaming service that offers video-on-
demand licenses at least some movies and shows that have been previously shown elsewhere,
which tends to lower the cost of licensing this content.
Differences in prices across streaming services that offer only video-on-demand tend to be fairly
small. This may be partially due to their relatively low prices, which make it difficult to lower
prices further. Thus, in addition to competing with prices, streaming services may seek to offer
exclusive access to popular movies and TV shows to attract new subscribers.

7 James Willcox, “Cable vs. Streaming Live TV Services: Which Should You Choose?” Consumer Reports, July 29,
2019, at https://www.consumerreports.org/tv-service/cable-vs-streaming-live-tv-services/.
8 For example, see advertisements for YouTube TV (https://tv.youtube.com/welcome/) and Hulu Live TV
(https://www.hulu.com/live-tv).
9 Price increases among the top live TV streaming services are available at Deana Myers, Tony Lenoir, and Erica Pabst,
“Virtual Multichannel Forecast Remains Strong, Despite Early 2020 Sub Losses,” S&P Global Intelligence, July 14,
2020.
10 Ty Pendlebury, “YouTube TV Hiked Price to $65: Sling TV and Hulu Offer Better Value,” CNET, July 14, 2020, at
https://www.cnet.com/news/youtube-tv-hiked-price-to-65-sling-tv-and-hulu-offer-better-value/.
11 Kym Nator, “Virtual multichannel carriage: Sports networks,” S&P Global Market Intelligence, September 16, 2020;
Chaim Gartenberg, “There Are More Streaming Choices than Ever—Why Are Prices Going Up?” The Verge, July 1,
2020, at https://www.theverge.com/21310442/tv-streaming-youtube-fubo-price-increases-carrier-fees-disputes-costs-
cable-television.
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Table 2. Prices for Select Streaming Services
Video Streaming Service
Monthly Price
# of Channels
Live TV
AT&T TV Now (formerly DirecTV Now)
$59.99 (for the first year)*
65
CBS All Access
$5.99 ($59.99/year)
4
Hulu Live TV
$53.99
60
Sling TV
$30.00
30
YouTube TV
$64.99
85
Only Video on Demand
Apple TV+
$4.99

Disney+
$6.99 ($69.99/year)

HBO (formerly HBO Now)
$14.99
n/a
HBO Max
$14.99

Netflix
$8.99

Source: Compiled by CRS from various sources.
Notes: The cheapest subscription package is listed for the streaming services that offer multiple subscription
choices, which can depend on the number of channels offered, user accounts, and other factors.
* Unlike the other video streaming services listed, AT&T TV Now requires a two-year agreement. The
$59.99/month price is for the first year; the price increases for the second year (https://www.att.com/tv/).
When the first streaming services launched in the late 2000s, they offered movies and shows that
had been previously shown elsewhere. For example, when Netflix launched its streaming service
in 2007, it offered about 1,000 television shows and movies, licensed from NBC Universal, Sony
Pictures, MGM, and others; it did not offer original content.12 A few years later, some streaming
services started commissioning movies and shows from television or film studios. This made
streaming services less dependent on licensing agreements with television networks and allowed
them to offer original programming, which increased the importance of content. 13 In 2013,
Netflix debuted its first original series, House of Cards, and became the first streaming service to
win a Television Academy Emmy Award.14 Original programs from other streaming services have
won television awards as well, such as Hulu’s Handmaid’s Tale.15 In 2020, Netflix received 160
Emmy nominations, breaking the record for the greatest number of nominations of any network,
studio, or streaming platform.16 Nevertheless, streaming services continue to license previously

12 Miguel Helft, “Netflix to Deliver Movies to the PC,” New York Times, January 16, 2007, at
https://www.nytimes.com/2007/01/16/technology/16netflix.html.
13 For example, in 2011, Netflix outbid cable networks, including HBO and AMC, for Media Rights Capital’s House of
Cards; see Nellie Andreeva, “Netflix to Enter Original Programming With Mega Deal for David Fincher-Kevin Spacey
Series ‘House of Cards,’” Deadline, March 15, 2011, at https://deadline.com/2011/03/netflix-to-enter-original-
programming-with-mega-deal-for-david-fincher-kevin-spacey-drama-series-house-of-cards-114184/.
14 Television Academy, “65 th Emmy Awards Nominees and Winners,” accessed on July 29, 2020, at
https://www.emmys.com/awards/nominees-winners/2013.
15 Handmaid’s Tale has been nominated for and won Emmy awards (https://www.emmys.com/shows/handmaids-tale)
and Golden Globes (https://www.goldenglobes.com/tv-show/handmaids-tale).
16 John Koblin, “Netflix Breaks HBO’s Record for the Most Emmy Nominations Ever,” New York Times, July 28,
2020, at https://www.nytimes.com/2020/07/28/arts/television/emmy-nominations.html.
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broadcast movies and shows from television networks and film studios to complement their
original content.
Some streaming services, particularly those that offer live TV, advertise themselves as an
alternative to MVPDs. However, streaming services oftentimes rely on the same content creators
as television networks, such as sports leagues and television and movie studios.17 Television
networks and movie theaters show a single program at a time, which can create incentives to
select the program with the greatest profit potential for each time slot. In contrast, streaming
services offer multiple programs for users to choose from. Thus, streaming services can feature
content that appeals to various groups of users rather than to the public at large. This may
increase competition for video content and provide new opportunities for content creators.18
Some companies that own studios and television networks offer their own video streaming
services. This can create incentives for these studios to license fewer shows and movies to other
streaming services, reserving popular content for their own streaming services instead. For
example, AT&T, which owns Warner Brothers Studio, stopped licensing certain shows—such as
Friends, The Wire, and The Sopranos—to streaming services owned by other companies, offering
these shows exclusively on its streaming services HBO and HBO Max.19 Similarly, Comcast is
offering some of its NBCUniversal shows, such as The Office and Parks and Recreation,
exclusively on its streaming service Peacock;20 Walt Disney Co. announced that The Simpsons
would be offered exclusively on its streaming service Disney+.21
Streaming services operated by companies that also own film studios and television networks
may have an advantage over their competitors. A company may provide its streaming service
exclusive access to its studio’s programming, or may choose to license the programming to its
streaming competitors for a fee. This means some streaming services are able to restrict access to
content, which could make it more difficult for new competitors to enter the video streaming
market. Entrants may need to devote significant resources to produce or license content before
offering their streaming services to customers.

17 For an illustration of how content providers work with various operators in the TV industry, see Figure 2 in CRS
Report R46023, Copyright Act and Communications Act Changes in 2019 Related to Television , by Dana A. Scherer.
18 There has also been consolidation among content creators. For example, Walt Disney Co. acquired 21 st Century Fox,
which owned studios and television networks, on March 20, 2019 (https://www.npr.org/2019/03/20/705009029/disney-
officially-owns-21st-century-fox). Details on competition among content creators are beyond the scope of this report.
19 The streaming service HBO Now was renamed HBO on July 31, 2020; see Joan Solsman, “HBO Is Ending HBO Go,
Renaming HBO Now Since HBO Max Is Live,” CNET, June 13, 2020, at https://www.cnet.com/news/hbo-max-hbo-
go-hbo-now-roku-amazon-fire-tv-ending/. On licensing issues, see Julia Alexander, “AT&T Will Pull Popular Shows
Like Friends from Competitors, says CEO,” The Verge, May 14, 2019, at https://www.theverge.com/2019/5/14/
18623082/att-streaming-warnermedia-netflix-hulu-friends-er-disney-comcast-nbc-universal, and Meghan O’Keefe,
“Here’s Why HBO Series Like ‘The Sopranos,’ ‘The Wire’ Left Amazon Prime,” Decider, May 22, 2020, at
https://decider.com/2020/05/22/hbo-shows-leave-prime-video-the-sopranos-entourage-the-wire/.
20 Jordan Crucchiola, “Parks and Rec is Leaving Netflix and Every Other Platform for NBC’s Streaming Service,”
Vulture, September 17, 2019, at https://www.vulture.com/2019/09/parks-and-rec-leaving-netflix-for-peacock.html; Joe
Otterson, “‘The Office’ to Stream Exclusively on NBCUniversal Service Beginning in 2021,” Variety, June 25, 2019,
at https://variety.com/2019/tv/news/the-office-streaming-nbcuniversal-2021-1203252977/.
21 Joe Otterson, “‘The Office’ to Stream Exclusively on NBCUniversal Service Beginning in 2021,” Variety, June 25,
2019, at https://variety.com/2019/tv/news/the-office-streaming-nbcuniversal-2021-1203252977/.
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Vertical Integration with Video Streaming Services
Some companies that offer video streaming services are integrated vertically in areas other than
content creation.22 Some operate digital media players, which are used to access streaming
services on televisions, while others provide internet and mobile services, which are used to
distribute video content. Some offer information technology services—including cloud
computing services and content delivery networks (CDNs)—that can be used to store and
distribute video content, which can help with latency. These situations and their potential impact
on competition among video streaming services are described further in this section.
Cloud Computing and Content Delivery Networks
Video streaming services can rely on information technology services, particularly cloud
computing and CDNs. They typically store their content on “cloud computing” servers accessed
over the internet,23 which they may find more cost-effective than developing and maintaining
their own systems.24 CDNs are networks of remote servers that are located near internet service
providers’ facilities, avoiding potential congestion points. By using CDNs, streaming services can
reduce the likelihood of experiencing latency while delivering content to their customers.25 Both
of these technologies are ideal for video streaming services, which store and transmit large
amounts of data.
Some companies that offer video streaming services operate their own information technology
services. Amazon owns both Amazon Web Services (AWS), a cloud computing service with a
CDN, and a video streaming service, Prime Video. Alphabet Inc. operates the cloud computing
service Google Cloud, which has its own proprietary CDN, and the video streaming services
YouTube and YouTube TV. Apple built its own CDN in 2014, paying large internet service
providers for direct connections to their networks, and is reportedly using it for its streaming
service AppleTV+.26
A video streaming service can use cloud computing and CDNs without incurring an additional
cost if its parent company owns these services. In contrast, competing video streaming services
may need to pay a fee; the amount generally depends on various factors, such as the services
required and the amount of storage needed.27 For example, while Netflix has maintained its
proprietary CDNs, it started migrating its central storage to AWS in August 2008 and completed
the shift in January 2016, meaning it faces a cost that its competitor Prime Video does not.28

22 Vertical integration is when a company operates at multiple stages along the supply chain.
23 For information about cloud computing, see https://azure.microsoft.com/en-us/overview/what-is-cloud-computing/.
24 For an example of the costs and benefits a company may consider before choosing to use cloud computing services,
see Petra Maresova, Vladimir Sobeslav, and Ondrej Krejcar, “Cost -benefit analysis – evaluation model of cloud
computing deployment for use in companies,” Applied Economics, vol. 49, no. 6 (2017), pp. 521-533.
25 Latency refers to delays between a user’s action and the resulting response. With respect to online video distribution,
latency issues can lead to delays in receiving programming, resulting in gaps in video content that is intended to be
continuous. More information about CDNs is provided at https://www.cloudflare.com/learning/cdn/what-is-a-cdn/.
26 Ben Popper, “Apple Reportedly Paying Internet Service Providers to Ensure Speedy Delivery of Its Data,” The
Verge, July 31, 2014, at https://www.theverge.com/2014/7/31/5956743/apple-cdn-content-delivery-network-paid-
interconnection-isp-comcast; Benjamin Mayo, “Apple TV+ Praised for Its High Bitrate Streaming Video Quality,” 9to
5Mac, November 5, 2019, at https://9to5mac.com/2019/11/05/apple-tv-plus-streaming-quality/.
27 For example, pricing information for Microsoft’s Azure is available at https://azure.microsoft.com/en-us/pricing/ and
for AWS at https://aws.amazon.com/pricing/.
28 Netflix, “Completing the Netflix Cloud Migration,” February 11, 2016, at https://media.netflix.com/en/company-
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However, using AWS may be less costly for Netflix than maintaining its own servers and
network. In addition, the number of companies offering cloud computing and CDN services has
increased, potentially making it more difficult for vertically integrated companies to gain a cost
advantage over streaming service competitors.
Internet Service Providers and Mobile Service Providers
Video streaming services rely on internet service providers (ISPs) and mobile service providers to
deliver content to users. Some companies are integrated vertically, offering video streaming
services while operating as an ISP or mobile service provider. AT&T is an ISP and mobile service
provider that also owns the streaming services HBO, HBO Max, and AT&T TV Now.29 Comcast
is an ISP that offers the streaming service Peacock.30 On July 1, 2020, satellite television provider
Dish Network completed its acquisition of the mobile wireless service Boost Mobile; Dish also
offers the streaming service Sling TV.31 Some mobile service providers are also offering special
deals to access certain streaming services. For example, depending on their mobile service plan,
some Verizon Wireless customers are eligible to receive a free subscription to Disney+, Hulu (ad-
supported), and ESPN+ for six months.32
Companies that are integrated vertically by operating ISPs or providing mobile wireless services
may be able to prioritize their own video content at congestion points, thereby minimizing
latency. Competing video streaming services may need to pay for prioritization at these
congestion points to provide comparable services.33 The FCC’s 2017 Restoring Internet Freedom
Order reclassified broadband as an information service and removed the ban on paid prioritization
implemented by its 2015 Open Internet Order.34
Digital Media Players
Digital media players allow users to access streaming services over the internet on televisions.
Examples include gaming consoles, Smart TVs, which are internet-connected televisions that

blog/completing-the-netflix-cloud-migration. For information on Netflix’s CDN operations, see Netflix, “Open
Connect Overview,” 2019, at https://openconnect.netflix.com/Open-Connect-Overview.pdf.
29 AT&T is a T ier 1 ISP, meaning it owns part of the internet backbone and is able to send content to other parts of the
internet in the United States for free. DrPeering.net, “Who Are the T ier 1 ISPs?” accessed on August 10, 2020,
https://drpeering.net/FAQ/Who-are-the-Tier-1-ISPs.php.
30 Comcast is not a T ier 1 ISP, meaning it may need to pay or barter to access portions of the internet backbone in the
United States.
31 The U.S. Department of Justice entered into a consent decree with T -Mobile and Sprint under which Sprint agreed to
divest its prepaid businesses—including Boost Mobile and Virgin Mobile—to Dish. U.S. Department of Justice,
“Justice Department Settles with T -Mobile and Sprint in Their Proposed Merger by Requiring a Package of
Divestitures to Dish,” press release, July 26, 2019, at https://www.justice.gov/opa/pr/justice-department-settles-t-
mobile-and-sprint-their-proposed-merger-requiring-package. More information on Boost Mobile is available at
http://about.dish.com/2020-07-01-DISH-enters-retail-wireless-market-with-close-of-Boost-Mobile-advances-build-of-
the-nations-first-standalone-5G-network and https://www.boostmobile.com/support/faq/plans-services/dish-and-boost-
mobile-merger.html.
32 Additional details are available at https://www.verizon.com/support/disney-bundle-faqs/.
33 For more information on paid prioritization and net neutrality, see CRS Report R40616, The Net Neutrality Debate:
Access to Broadband Networks, by Angele A. Gilroy.
34 Federal Communications Commission, In the Matter of Restoring Internet Freedom , WC Docket No. 17-108,
adopted December 14, 2017, released January 4, 2018, at https://www.fcc.gov/document/fcc-releases-restoring-
internet-freedom-order; and Federal Communications Commission, In the Matter of Protecting and Promoting the
Open Internet, GN Docket No. 14-28, adopted February 26, 2015, released March 12, 2015, at https://www.fcc.gov/
document/fcc-releases-open-internet-order.
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contain built-in apps, and streaming devices that can be plugged into a television, generally at the
HDMI port. The number of households with Smart TVs and streaming devices nearly doubled
from 2014 to 2019 (Figure 1). As of the second quarter of 2020, most of the streaming devices
owned by households were Amazon or Roku products (Figure 2).
Figure 1. Number of Households in the United States with Digital Media Players
(in millions)

Source: S&P Global Market Intelligence.
Notes: Excludes enterprise tablets and game consoles that do not connect to the internet. Streaming devices
combine streaming sticks (e.g., Chromecast and Fire TV Stick) and streaming media players (e.g., Apple TV and
Roku Players).
Figure 2. Streaming Devices Owned by Households in the United States
(in millions)

Source: S&P Global Market Intelligence.
Note: The estimates are for the second quarter of 2020. “Other” includes NVIDIA.
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Most users access streaming services on their television using digital media players. In 2018,
Netflix reportedly showed that 70% of its viewership occurred on televisions rather than directly
on smartphones, tablets, or computers.35 To be included on a digital media player, a streaming
service may agree to pay a fixed fee or a portion of the revenue or may reach some other
agreement with the owner of the digital media player. Details of such agreements are generally
not publicly available.
Some companies have integrated vertically by providing streaming services as well as digital
media players. For example, Amazon, which owns the streaming service Prime Video, released its
own digital media player in 2014—the first-generation Fire TV. Apple offers both streaming
service Apple TV+ and streaming device Apple TV, and Alphabet operates both streaming service
YouTube and streaming device Chromecast.
Companies that operate digital media players can limit consumer access to streaming services by
excluding individual services from the players. However, these companies also have an incentive
to offer content from various streaming services to attract potential consumers, particularly if they
receive a portion of the other streaming services’ revenue. Vertically integrated companies
balance these opposing incentives, which may involve weighing how much revenue is generated
from the digital media player versus the streaming service.
An important issue for video streaming services that rely on digital media players to reach
consumers is control of user data. A digital media player collects data on the frequency and
duration of use for each app downloaded on the device, including streaming services. If the player
is owned by a vertically integrated company, this information can be used to determine the
popularity of competitors’ streaming services. The company operating the digital media player
may be able to use this information to improve its ad targeting, to increase revenue by selling or
sharing the data with other interested parties, and to use whatever insights it obtains to improve
its own streaming service. Some digital players allow users to adjust their privacy settings to limit
targeted ads, although this may not keep the player from continuing to collect users’ data.36
Recent Disputes Involving Video Streaming
Several video streaming services have been launched since fall 2019.37 Some of these streaming
services—including Disney+, HBO Max, and Peacock—have had disputes with some companies
that own digital media players. Some streaming services are currently unavailable on some digital
media players, meaning these streaming services may be unable to reach all potential consumers.
The disputes reflect broader negotiations taking place across the media industry, illustrating that
competition among streaming services cannot be evaluated without examining competition
among media companies more broadly. Some disputes over the inclusion of competing streaming

35 Peter Kafka, “You Can Watch Netflix on Any Screen You Want, But You’re Probably Watching It on a TV,” Vox,
March 7, 2018, at https://www.vox.com/2018/3/7/17094610/netflix-70-percent-tv-viewing-statistics.
36 Hooman Mohajeri Moghaddam, Gunes Acar, Ben Burgess, Arunesh Mathur, Danny Yuxing Huang, Nick Feamster,
Edward W. Felten, Prateek Mittal, Arvind Narayanan, “Watching you watch: The tracking ecosystem of over-the-top
TV streaming devices,” Proceedings of the 2019 ACM SIGSAC conference on computer and communications security
– CCS ’19, 2019, New York, NY: ACM Press, at https://www.princeton.edu/~pmittal/publications/tv-tracking-
ccs19.pdf.
37 Shelly Tan, “Your Guide to New Ways to Watch TV in 2019,” Washington Post, October 31, 2019, at
https://www.washingtonpost.com/graphics/2019/entertainment/new-streaming-services-2019/; Dan Reilly, “A Guide to
All the New Streaming Services That Want Your Money,” Vulture, November 5, 2019, at https://www.vulture.com/
2019/11/new-streaming-services-2019-2020.html.
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services on a digital media player involve access to video content and the sale of advertising
spaces on television networks.
Disney+
Disney+ launched in the United States on November 12, 2019. It offers content owned by Walt
Disney Co.—such as movies and shows from the Disney, Pixar, and Marvel studios—as well as
Disney+ original programming.38 Walt Disney Co. also owns film studios, cable networks such as
ESPN, and the broadcast television network ABC, and has operational control of Hulu, another
streaming service that also offers live TV.
Some video content owned by Walt Disney Co. is not available on Disney+ due to preexisting
licensing deals with other streaming services.39 In addition, some of the Marvel shows that were
scheduled to be released on Disney+ in 2020 have been delayed due to the Coronavirus Disease
2019 (COVID-19) pandemic.40 However, some movies that were scheduled to be released in
theaters are being premiered on Disney+ instead, giving it exclusive content to offer subscribers.
For example, the live-action remake of the movie Mulan was released on Disney+ in September
2020 to subscribers willing to pay an additional fee.41
Walt Disney Co. disputed with Amazon over the inclusion of Disney+ on Amazon’s digital media
players—Fire TV devices.42 Amazon reportedly pushed for the right to sell a substantial
percentage of Walt Disney Co.’s ad spaces, although Disney+ currently does not have any ads.43
Instead, Amazon wanted the right to sell advertising on other media services owned by Walt
Disney Co., such as apps for its television networks, which include ABC, ESPN, and the Disney
Channel. The companies reached an agreement before Disney+ launched;44 details are not
publicly available.
HBO Max
HBO Max was launched in the United States by AT&T Inc. on May 27, 2020. AT&T owns
various cable networks, including HBO and TNT, and the streaming services HBO (formerly
HBO Now), HBO Max, and AT&T Live TV.45 Subscribers of the cable network HBO and the

38 More information is available at https://www.disneyplus.com/.
39 Sarah Whitten, “Some Disney Movies Won’t Appear on Disney+ on Launch Date—or Ever,” CNBC, November 7,
2019, at https://www.cnbc.com/2019/11/07/a-number-of-disney-movies-wont-appear-on-disney-on-launch-day.html.
40 Paul Tassi, “Disney Plus Has Delayed All Its 2020 Marvel Shows Due to COVID,” Forbes, July 18, 2020, at
https://www.forbes.com/sites/paultassi/2020/07/18/disney-plus-has-delayed-all-its-2020-marvel-shows-due-to-covid/
#9f8d52b2d5df.
41 Todd Spangler, “Mulan Movie Premiere on Disney Plus Can Be Purchased Through Apple, Google, Roku,” Variety,
August 21, 2020, at https://variety.com/2020/digital/news/mulan-disney-plus-purchase-apple-google-and-roku-
1234743675/.
42 Fire TV devices include Smart TVs (e.g., Insignia – Fire TV Edition) and streaming devices Fire TV Stick and Fire
TV Cube. Details are available at https://www.amazon.com/Amazon-Fire-TV-Family/b?ie=UTF8&node=8521791011.
43 Dana Mattioli, Sahil Patel, and Patience Haggin, “Amazon Clashes with Disney Over Terms for Offering Apps in
Fire TV,” Wall Street Journal, October 3, 2019, at https://www.wsj.com/articles/amazon-disney-fight-over-ad-revenue-
from-apps-on-fire-tv-11570117659?mod=article_inline.
44 Dana Mattioli and Ethan Smith, “Amazon’s Fire TV to Carry Disney+,” Wall Street Journal, November 7, 2019, at
https://www.wsj.com/articles/amazon-s-fire-tv-to-carry-disney-11573162055.
45 HBO offered a streaming service—HBO Go—that was offered for free with an HBO subscription through a TV
provider. For subscribers, it was retired on August 31, 2020. HBO Now, a stand-alone streaming service that contained
the same content as HBO Go, was rebranded as the HBO app on July 31, 2020. Details are available at
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streaming service HBO Now received an automatic upgrade to HBO Max, although some may
need to download a new app.46 HBO Max offers video content available on the streaming service
HBO, as well as content produced by AT&T’s Warner Brothers Studio and original HBO Max
programming. The programming on the streaming service HBO is also available as a “channel”
on competing streaming services, including Amazon Prime Video and the Roku Channel.47
AT&T has been seeking distribution agreements for HBO Max with several companies. It reached
an agreement with Comcast hours after HBO Max officially launched, allowing customers who
subscribe to AT&T’s HBO cable network as part of a Comcast cable television package to access
HBO Max for no extra charge.48 According to its website, HBO Max is available on several
streaming devices, including Chromecast, sold by Alphabet Inc., and Apple TV.49 Currently, HBO
Max is not available on digital media players created by Roku and Amazon, although they have
access to the streaming service HBO.50
The dispute between Amazon and AT&T centers on whether HBO Max content will be available
on Prime Video’s HBO channel. AT&T’s CEO John Stankey reportedly stated that Amazon is
treating HBO Max differently than other streaming services.51 AT&T reportedly would be able to
track users’ consumption habits more easily by providing them content through a separate HBO
Max app on Amazon’s digital media players, as streaming services like Netflix and Hulu do.52
However, Amazon would like to make the HBO Max content available through its HBO channel
on Prime Video. Amazon reportedly stated that AT&T’s approach is denying access to HBO Max
content to the 5 million customers who subscribe to the HBO channel through Prime Video.
Details of AT&T’s dispute with Roku are publicly available only from news articles citing
unnamed sources. Roku and AT&T have stated only that they have been unable to reach an
agreement. Some articles report that the dispute centers on the share of revenue and ad spaces
Roku would receive by making HBO Max available on Roku’s digital media players.53 Others
report that the dispute with Roku concerns whether HBO Max content would be available on

https://www.hbo.com/hbo-news/hbo-max-hbo-go-hbo-now-difference.
46 The HBO app is no longer available on T iVo’s DVRs, although HBO Max users can still download the new app
(https://www.fiercevideo.com/video/tivo-dvrs-will-lose-hbo-app-at-end-august). Some cable companies do not carry
HBO either, such as Dish Network, which has not carried HBO since November 2018. Details on how subscribers can
obtain access to HBO Max through various devices are available in the following article: Todd Spangler, “HBO Max
Launch: How to Get the Streaming Service (and How You Can’t),” Variety, May 26, 2020, at https://variety.com/2020/
digital/news/hbo-max-how-to-get-streaming-service-free-1234616599/.
47 Amazon Prime Video and Roku Channel subscribers can add a subscription to various channels, including the
streaming service HBO, where the subscription fee for each channel is included in the Prime Video or Roku Channel
subscription. These channels are accessed through the Prime Video and Roku Channel app, meaning that the subscriber
must be logged into Prime Video or Roku in order to access them.
48 Ben Munson, “Comcast Reaches Distribution Deal for HBO Max,” FierceVideo, May 27, 2020, at
https://www.fiercevideo.com/cable/comcast-reaches-distribution-deal-for-hbo-max.
49 A list of streaming devices that can be used to access HBO Max is available at https://www.hbomax.com.
50 Julia Alexander, “HBO Now subscribers can continue to stream on Amazon after all,” Verge, July 31, 2020, at
https://www.theverge.com/2020/7/31/21349487/hbo-now-amazon-fire-tv-stream-august-max-go-roku-negotiation.
51 Edmund Lee, “AT&T Signed up 4 Million HBO Max Customers,” New York Times, July 23, 2020, at
https://www.nytimes.com/2020/07/23/business/media/att-hbo-max.html.
52 Joe Flint and Lillian Rizzo, “HBO Max Is Left Out of Amazon’s, Roku’s Platforms at Launch,” Wall Street Journal,
May 27, 2020, at https://www.wsj.com/articles/hbo-max-leaves-at-t-at-odds-with-amazon-and-roku-11590597190.
53 Ibid.
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Roku’s digital media players exclusively through HBO Max or whether it would be available on
the HBO channel on the Roku Channel.54
Peacock
Peacock, owned by Comcast, launched nationally in the United States on July 15, 2020.55 It offers
video content from Comcast-owned NBCUniversal, including video content broadcast on the
NBC network, and from various film studios owned by Comcast, including Universal and
DreamWorks Animation. Peacock also provides original content. Peacock has three subscription
tiers: (1) a free version with ads and about two-thirds of Peacock’s library, including Parks and
Recreation and 30 Rock; (2) a premium version for $4.99/month with ads that offers Peacock’s
complete library, including The Matrix trilogy and more sports coverage; and (3) a premium plus
version for $9.99/month, which offers the same content as the premium version, but without
ads.56
When Peacock initially launched, it was available on various streaming devices, including Apple
TV and Google Chromecast, but not on Amazon’s or Roku’s digital media players.57 The
disagreements reportedly centered on advertising and including content from NBCUniversal on
their own video streaming services.58 Peacock and Roku reportedly reached an agreement on
September 18, 2020, which includes adding NBC content to the Roku Channel and entering a
digital advertising partnership.59 Peacock and Amazon have yet to reach an agreement.
Oversight of Video Streaming Services
The Communications Act of 1934 created the FCC. It has the authority to regulate broadcast
stations and multichannel television, including limiting the number of broadcast stations an entity
can own. It generally does not regulate broadcast content, aside from prohibiting obscene or
indecent content and prohibiting cable operators from exercising “undue influence” over affiliated
television networks over the sale of programming; it does not regulate information provided over
the internet.60

54 Todd Spangler, “HBO Max’s 80 Million Household Dead Spot: Why Streamer Isn’t on Roku or Amazon Fire TV,”
Variety, May 27, 2020, at https://variety.com/2020/digital/news/why-hbo-max-not-available-roku-amazon-fire-tv-
1234615984/.
55 Rick Marshall, “Peacock: Everything We Know About NBCUniversal’s Streaming Video Service,” Digital Trends,
July 15, 2020, at https://www.digitaltrends.com/movies/everything-to-know-about-peacock-nbc-universal/.
56 For details about Peacock’s subscription service, see Alison Rayome, “Peacock free vs. Premium vs. Premium Plus:
What’s Included in Each Plan and What Isn’t,” CNET, August 20, 2020, at https://www.cnet.com/news/peacock-free-
vs-premium-vs-premium-plus-whats-included-in-each-plan-and-what-isnt/.
57 Digital media players that can be used to access Peacock are listed at https://www.peacocktv.com/help/article/what-
devices-and-platforms-are-supported-by-peacock. Peacock is also available through some cable set -top boxes,
including those leased by Comcast’s Xfinity and Cox.
58 Lillian Rizzo and Joe Flint, “Peacock, NBCUniversal’s New Streaming Service, Joins Crowded Field at Challenging
T ime,” Wall Street Journal, July 13, 2020, at https://www.wsj.com/articles/peacock-nbcuniversals-new-streaming-
service-joins-crowded-field-at-challenging-time-11594665415.
59 Josef Adalian, “Peacock is (Finally) Headed to Roku,” Vulture, September 18, 2020, at https://www.vulture.com/
2020/09/why-peacock-isnt-on-roku.html.
60 Details about the FCC and its regulatory authority are available at https://www.fcc.gov/media/radio/public-and-
broadcasting. For more information on past regulations on MVPDs, see CRS Report R46077, Potential Effect of FCC
Rules on State and Local Video Franchising Authorities, by Dana A. Scherer, and CRS Report R44122, Charter-Time
Warner Cable-Bright House Networks Mergers: Overview and Issues, by Dana A. Scherer.
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Video streaming services, or online video distributors, are generally not regulated by the FCC.
However, the FCC does recognize OVDs as potential competitors to multichannel video
programming distributors and broadcast television stations. In its 18th report on the Status of
Competition in the Market for the Delivery of Video Programming, the FCC lists the three main
providers of video programming as MVPDs, broadcast television stations, and OVDs. 61 This
means that the presence of OVDs can affect how MVPDs are treated by the FCC. For example, in
2019, the FCC determined that AT&T TV Now satisfied the local exchange carrier test, 62 serving
as a competitor to Charter Communications by providing video services in certain franchise areas
in Hawaii and Massachusetts; this means Charter’s cable service in those areas is no longer
subject to rate regulation.63
The FCC has considered regulating OVDs similarly to MVPDs. In 2014, it proposed a rule
amending its interpretation of the term MVPD to include OVDs. For example, OVDs would have
to negotiate with broadcast station owners for consent to retransmit broadcast programming, as
MVPDs must do now, which could raise OVDs’ costs.64 The order was never voted on, but TV
station affiliates of the ABC, CBS, Fox, and NBC broadcast networks reportedly requested FCC
Chairman Ajit Pai to revisit the order in June 2020.65 If the order were to be adopted, OVDs
would come under FCC regulation for certain purposes.
Companies that offer video streaming services have engaged in mergers and acquisitions, which
are subject to antitrust enforcement by the U.S. Department of Justice (DOJ) and Federal Trade
Commission. In 2016, the DOJ and FCC worked together to evaluate Charter Communications
Inc.’s proposed acquisition of Time Warner Cable Inc. and Bright House Networks LLC.66 It
approved the merger under the condition that the new merged company could not enter or enforce
agreements that would make it more difficult for OVDs to obtain video content from
programmers.67 In June 2020, the merged company petitioned the FCC to remove those
conditions in 2021, citing a flourishing OVD market as evidence that the conditions are not
necessary.68

61 The list of reports is available at https://www.fcc.gov/general/media-bureau-reports-industry. Although the FCC
requested comment for the 19 th Video Competition report on August 24, 2017 (https://www.fcc.gov/document/media-
bureau-seeks-comment-19th-video-competition-report), the report has not been released.
62 In the Cable Television Consumer Protection and Competition Act of 1992, Congress authorized local franchising
authorities to regulate cable rates if comparable video programming is not provided in the area.
63 Federal Communications Commission, In the Matter of Petition for Determination of Effective Competition in 32
Massachusetts Communities and Kauai, HI , MB Docket No. 18-283, CSR No. 8965-E, adopted and released October
25, 2019, at https://www.fcc.gov/document/fcc-grants-charter-communications-effective-competition-petition-0.
64 Federal Communications Commission, In the Matter of Promoting Innovation and Competition in the Provision of
Multichannel Video Programming Distribution Services, MB Docket No. 14-261, adopted December 17, 2014,
released December 19, 2014, at https://www.fcc.gov/document/commission-adopts-mvpd-definition-nprm.
65 John Eggerton, “TV Stations Ask FCC to Revive Item Regulating OTT,” Next TV, June 22, 2020, at
https://www.nexttv.com/news/tv-stations-ask-fcc-to-revive-item-regulating-ott.
66 For more information, see CRS Report R44122, Charter-Time Warner Cable-Bright House Networks Mergers:
Overview and Issues, by Dana A. Scherer.
67 Department of Justice, “Justice Department Allows Charter’s Acquisition of T ime Warner Cable and Bright House
Networks to Proceed with Conditions,” April 25, 2016, at https://www.justice.gov/opa/pr/justice-department-allows-
charter-s-acquisition-time-warner-cable-and-bright-house-networks.
68 Counsel for Charter Communications Inc. petition to Federal Communications Commission, In the Matter of
Conditions Imposed in the Charter Communications-Time Warner Cable-Bright House Networks Order, WC Docket
No. 16-197, June 17, 2020, at https://ecfsapi.fcc.gov/file/10617776920059/Charter%20Merger%20Conditions%
20Sunset%20Petition%20(6-17-20).pdf.
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In 2017, the DOJ filed a civil antitrust lawsuit to block AT&T’s proposed acquisition of Time
Warner Inc.69 At the time of the lawsuit, Time Warner owned various cable networks (e.g., HBO
and TNT) and film studios through Warner Bros.; it was also a partial owner of the broadcast
television network CW, which is partially owned by ViacomCBS. Part of the concern was that
AT&T, the nation’s largest distributor of television, would harm competition by forcing rival
distributors, including emerging OVDs, to pay more for Time Warner’s popular programming.70
The merger was allowed to proceed in 2019 after the U.S. Court of Appeals for the District of
Columbia Circuit ruled in favor of AT&T and Time Warner.71
Considerations for Congress
Current laws governing broadcast stations and MVPDs generally do not address video streaming
services. For example, the Television Viewer Protection Act of 2019 (Title X of Division P of the
Further Consolidated Appropriations Act, 2020, P.L. 116-94) permanently extended some legal
provisions governing MVPDs, but did not mention video streaming services.72
Committees in both houses of Congress have been investigating competition in digital markets
since 2019. As an increasing number of companies operate in multiple markets, it may be
important to consider the various ways these companies compete. Companies that are integrated
vertically may be able to restrict a competing streaming service’s access to content (e.g., by not
entering or renewing licensing agreements) or limit access to the streaming service itself (e.g., not
including the service on its digital media player). A similar issue was raised in a House Judiciary
Committee Antitrust Subcommittee hearing in January 2020, when representatives of various
small companies spoke about the difficulties of simultaneously competing against companies that
also distribute their products.73
It is unclear how competition among video streaming services affects consumers. Consumers may
benefit from the increasing number of companies offering video streaming services, particularly
those that offer multiple media services and products. Some of these companies may offer
multiple services for lower prices as package deals. For example, AT&T offers one year of free
access to HBO Max with certain DIRECTV satellite television packages and AT&T TV Now
streaming packages. However, the recent disputes illustrate that consumers may face limitations
on the content they are able to access, depending on the services available on the digital media
players and the licensing agreements. In addition, the disputes illustrate that companies
participating in multiple markets may compete by controlling access to content in addition to
pricing.

69 Time Warner Inc. and T ime Warner Cable Inc. are two different companies. Department of Justice, “Justice
Department Challenges AT&T/DirecTV’s acquisition of T ime Warner,” November 20, 2017, at
https://www.justice.gov/opa/pr/justice-department-challenges-attdirectv-s-acquisition-time-warner.
70 See CRS In Focus IF10526, AT&T-Time Warner Merger Overview, by Dana A. Scherer.
71 United States of America v. AT&T Inc. et al., no. 18-5214, at https://cases.justia.com/federal/appellate-courts/cadc/
18-5214/18-5214-2019-02-26.pdf.
72 For example, the act prohibits broadcast stations from entering exclusive contracts with cable, satellite, or telephone
companies that are used to transmit broadcast signals. For more information, see CRS Report R46023, Copyright Act
and Communications Act Changes in 2019 Related to Television, by Dana A. Scherer.
73 A recorded video of the hearing is available at https://judiciary.house.gov/calendar/eventsingle.aspx?EventID=2386.
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Author Information

Clare Y. Cho
Analyst in Industrial Organization and Business




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