• by Maarten Albarda , Featured Contributor, Yesterday

It was international mergers week in our industry: Paramount and Skydance, Omnicom and Interpublic, ESPN and the NFL Network and Disney plus Hulu all grabbed headlines. These strategic consolidations are reshaping our industry, creating new powerhouses, and signaling size apparently still matters. For marketers, understanding the drivers behind these deals is crucial, and understanding the why is more important than knowing the what.

I have advocated in the past that size is becoming less relevant, because technology allows anyone to be a full-service agency, and media is biddable and can be managed by fully integrated development and delivery tech (see my post from last week).

I understand the benefits of mergers and size for certain aspects of a business. Economies of scale, easier management of competitive pressure, and opportunities to grow a talent base are all valid reasons to consolidate.

Paramount Global and Skydance Media formed "Paramount, a Skydance Corporation." The stated goal is to create a more efficient and forward-thinking media company, capable of producing and distributing compelling content across multiple platforms, from traditional television to streaming.

The planned merger of Omnicom and Interpublic Group (IPG) received approval from the UK's Competition & Markets Authority this week. It is set to create the world's largest advertising holding company. The merger is being sold on the importance of data-driven marketing and the need for traditional agencies to evolve to compete effectively in the digital age. But the reality is, the new entity hopes to be a bigger fish for giant platforms like Alphabet and Meta (and Paramount, a Skydance Corporation), and to grab better margins on media deals, including principal media.

And then there was the announcement of ESPN's deal to acquire the NFL Network, the popular RedZone channel, and NFL Fantasy in exchange for a 10% equity stake for the NFL in ESPN. I’m not sure what to make of the spin on this deal, because what it will ultimately mean is that viewers and advertisers alike will end up paying more to gain access to NFL content.

Which brings us to ESPN’s parent Disney, who announced the full acquisition of Hulu. In 2026, Disney will fully integrate Hulu into the Disney+ streaming service, phasing out the standalone Hulu app. Still, the Hulu brand will continue to exist as Disney's general entertainment brand, replacing the Star tile on Disney+ internationally.

Yeah, I am as confused about this one as you are. I understand the efficiencies of integrating two stand-alone offerings into one, but streaming seems to be an area where Disney was actually doing OK. Disney+ reached 126 million subscribers by the end of the second quarter of fiscal year 2025, adding 1.4 million subscribers in that quarter alone. For consumers (like the Albarda household), however, it will mean having to decide if the new offering (and no doubt, price point) makes sense.

More importantly, what does all this mean for marketers when deciding where to place their ad dollars? A more consolidated media and advertising landscape will no doubt lead to less competition and potentially higher advertising costs. The promise that these larger, more integrated companies may be able to offer more sophisticated, effective advertising solutions, with better targeting, measurement, and cross-platform capabilities seems hollow at best. Size matters for these companies for their bottom line, not for creating better opportunities for marketers. As a marketer, I would pursue “smarts” over size.